LETTERS OF CREDIT

Copyright © 2004 TEMENOS HOLDINGS NV

1
LC – Product overview

Import

Confirmed

Letters of Un Confirmed
Credit
Revolving
Opening Negotiating
Non Revolving
LC
Amending Transferable
DRAWINGS
Non Sight
Transferable
Documentary Back to Usance
Collections Back
Stand by
Mixed

DRAW.
Export NEGOTIATIO
N
2
LC Dependencies

• All Business applications will make use of the following T24

functionality:
– CUSTOMER

– ACCOUNTS

– DELIVERY

– ACCOUNTING

– LIMITS

– and other STATIC TABLES

3
LC Dependencies – Product related

• For LC and Drawing applications, the hard coded category range

is 23000 – 23999
• These could be used to reflect the various LC and Collection
types in line with reporting requirements
– LC Import Sight, LC Import Acceptance, LC Export sight
confirmed, Collection document outward sight
• A default category code may be specified for each type of LC in
LC.TYPES file
• The category of a LC could be changed after authorisation
through internal amendment
• Further, P & L category codes for collecting and writing off
charges and commission and Internal provision account category
code used are indicated in LC.PARAMETERS

4
LC Dependencies – Interest related

Periodic interest

Used in discounted drawings

using Tiered system
of rate calculation

5
LC Dependencies – Charges and Commissions

These Codes can be used

while demanding or collecting
charges and Commission in
LC and DRAWING applications
For default input,
LC.TXN.TYPE.CONDITION
could be used

Possible to stipulate
Minimum and maximum
amounts for commissions

It is possible to amortise
Charges &Commissions
in LC over 1-11 months
or 1 – 99 years (Annum)
C – Till end of contract
R – Till next rollover schedule

6
LC Dependencies – Charges and Commissions

• Collecting multiple times of charges /

commission
– LC application has a field
CHARGE.PERIOD. If any number is
entered manually there, then Default
charges are multiplied so many times and
taken.
– If MINIMUM.PERIOD field in
FT.CHARGE.TYPE / FT.COMMISSION.
TYPE is entered (1,3,6,9,12,24), then this
value is automatically defaulted by the
system into CHARGE.PERIOD field in LC
– CHARGE.PERIOD field in FT.CHARGE.
TYPE / FT.COMMISSION. TYPE should
then be left blank

7
LC Dependencies – Charges and Commissions

• Collecting period based charges / commission

– Number of months that Comprise a charge
period can be defined (1,3,6,9,12,24 M) in
field CHARGE.PERIOD in the respective
FT.CHARGE.TYPE / FT.COMMISSION. TYPE
and the same period entered in
MINIMUM.PERIOD field also
– Depending on contract length, charges and
commission will be suitably multiplied and
taken
• If the commission shown here is applied to a LC
of 12 months, then CHARGE.PERIOD field in LC
gets a value of 12 and 12 times this commission
is taken
– If 3 and 3 defined, then 4 times this commission

8
LC Dependencies – Settlement related

• No standard settlement rules for accounts in LC application

• If account numbers are input for opener, beneficiary, advising
bank etc., then they are defaulted while collecting charges
• They are also defaulted in DRAWINGS application
• If payment method is indicated as Nostro in DRAWINGS, then
Payment account is defaulted using NOSTRO.ACCOUNT for the
payment currency

9
LC Dependencies - Currency related

COUNTRY

HOLIDAY
CURRENCY.PARAM

CURRENCY CURRENCY.MARKET

Holidays will be checked for defaulting Expiry and Closing dates

Interest Day Basis will be defaulted from Currency table to
transactions. Possible to change at contract level.

10
LC dependencies – Currency related

• Four choices available for interest day basis at LC level

– A 360/360
– B 366/360
– E 366/365
– F 360/365
• Interest day basis is used for calculation of Discount and Load
amounts on Drawing contracts and also for amortising charges
over the life of LC
• Defaulted from Currency record but could be changed by User at
LC level

11
Application specific Parameters

12
LC - Parameter tables

• The Parameter tables to be set-up during implementation are given

below:
– LC.PARAMETERS LC.ENRICHMENT
– LC.TYPES LC.ADVICE.TEXT
– LC.CLAUSES DR.DISCREPANT.TYPE
– ACCOUNT.CLASS EB.DUPLICATE.TYPE
– DR.INT.CALC.COND

– CONDITION.PRIORITY LC.GEN.CONDITION
– LC.GROUP.CONDITION LC.CUSTOMER.CONDITION
– LC.TXN.TYPE.CONDITION
• Implementation methodology BRADDs IM.LC, IM.COLLECTIONS and
IM.LC.CHG.GROUPING can be used to set up these tables
• LC.CUSTOMER.CONDITION is set up during secondary build as it
needs Customer Number as Id

13
LC.PARAMETERS

• Company level parameters for processing LC and Drawings.

– Id is Company code
• Different Currency markets could be indicated for
– LC, Collection transactions (Field CURRENCY.MARKET) and
Charges (Field CHARGE.CCY.MKT)
• Amortisation of charges done monthly on any chosen date
– Local currency and Foreign currencies in fields
AMR.CYCLE.L.CCY and AMR.CYCLE.F.CCY
• Discount drawing interest accrual can be done daily or monthly
on chosen date
– Local currency and Foreign currencies in fields
DIS.CYCLE.L.CCY and DIS.CYCLE.F.CCY
• When discounted drawing is amended, amortised charges can
be reversed and recalculated ONLY if opted for Yes in field
RECALCULATE.AMORT

14
LC.PARAMETERS

• General information - Dates

– Closure days
• To decide when to move LC or Collection after expiry to history if there
are no Drawings or Charges outstanding. Value defaulted to
CLOSING.DATE field in LC
– Pre-advice days
• To decide when to move a Pre-advice after Issue to history
– Coll Extn days
• To decide by how many days beyond the Expiry date, a Document sent
for Collection should be rolled over and kept live.
– Expiry date in a Collection document helps send Tracers

15
LC.PARAMETERS

• Limits related
– Whether Limit information is required for Unconfirmed portion of
partially confirmed Export LC
• Field UNCONFIRMED.LIMIT with choices Yes and No. One time input.
– If Yes, Export LC of USD 100,000 when partially confirmed for 40,000 will hit Product
Limit line with USD 40,000 and default Limit line with USD 60,000 for information.
– If No, It will hit only the Product Limit line with USD 40,000 and the second limit line will
be suppressed.
– Whether Limit should be considered after considering Provision
amount or not
• Field LIMIT.WITH.PROV
• YES to hit Limit after considering Provision and NO for full amount of LC without
considering Provision
– EXCH.TOLERANCE
• To indicate the percentage of tolerance that can be ignored while calculating limit
amount minus provision when provision and limit are in different currencies
– Useful while taking 100% provision in currency different from limit currency

16
LC.PARAMETERS

• Advice / Report related

– REIMBURSE.DAYS
• To decide when to send reimbursement message in case of Usance Drawing
before Maturity
– REVOL.ADVICE.DAYS
• To decide how many days prior to revolution should a revolution advice be sent
– MATURITY.USANCE
• To decide how many days prior to maturity should Usance drawings be reported
– COLLECTIONS.DUE
• To decide how many days prior to collection due date should a collection be
reported.
• EXPIRY.DATE field in LC is used to indicate the collection due date
– In case of documents under export LC, choice available in field
DEL.WITH.NO.DISCREP
• Yes – MT 750 and 1750 produced whether drawings are discrepant or not
• No – MT 750 produced only if drawings have discrepancies

17
LC.PARAMETERS

• Transaction codes
– Used in STMT.ENTRY and CATEG.ENTRY for narrating underlying
transaction
– Codes from 500 to 599 are earmarked for LC / Collections. Model bank
codes are suggested for use
• PAY.TRANS.CR and PAY.TRANS.DR for Credit / Debit entries for payments
• REIMB.TRANS.CR and REIMB.TRANS.DR for reimbursement
• DISC.TRAN.CODE.CR and DISC.TRAN.CODE.DR for discount
• LOAD.TRAN.CODE.CR and LOAD.TRAN.CODE.DR for discount spread
• UNCOLLECTED.TR.CR and UNCOLLECTED.TR.DR for uncollected commission
• WRITE.OFF.TR.CR for credit entries for writing off charges
• AMORT.TRANS for credit entries for amortising charges
• UNDER.RES.TX.CR and UNDER.RES.TX.DR for payments under reserve
• PROVISION.CR and PROVISION.DR for provision/margin under LC

18
LC.PARAMETERS

• P & L Category codes

– Used for automatic debit / credit to PL heads.
– Category codes above 50000 to be used. Model bank codes are
suggested for use
• DISC.CAT.CODE for discount amount related to discounted drawings
• LOAD.CAT.CODE for discount spread amount of discounted drawings
• UNCOLLECTED.CATRG for charges claimed and booked but not settled
• WRITE.OFF.PL for claimed and booked charges written off
• EXCH.PRFT.CAT for exchange profit & loss due to a spread on exchange rate
specified at the Drawings transaction level
– This represents the difference between rate quoted to Customer and Treasury
Department rate
– Meant for Trade Finance Department marketing profit
• DIS.RETAIN.CODE for excess interest / discount when amending a discounted
drawing

19
LC.PARAMETERS

• Default internal accounts / Category code

– Used for automatic debit / credit into internal accounts
– Category codes between 10000 to 19999 can be used. Model
bank codes are suggested for use. Internal Accounts in local
currency should be opened initially. System opens in other
currencies, when needed
• PRO.CATEGORY
– If Provision is not proposed to be kept at Customer (Account) level, then
Internal account under this Category will be used
• CHEQUES.ISSUED.ACC / B.P.ISSUED.ACC/ DRAFTS.ISSUED.ACC
– The respective internal Accounts to be credited for payments under LC
made through local currency cheque or Bankers Pay order or Drafts.
• PAY.SUBDIVISION / REIMB.SUBDIVISION
– The four digit internal account sub-division when payment / reimbursement
is made under LC or Collection.
– If 1 is entered, then internal suspense account with 0001 sub division (say
USD14900-0001) will be used by the system

20
LC.PARAMETERS

• Soft delivery options

– For new installations, BACKWARD.DELIVERY field is recommended to
be set to NO.
– LC.CLASS.TYPE and EB.CLASS.NO multi value fields are necessary
for the soft delivery set-up. It is recommended to use the model bank
data for the initial build
• Delivery related
– If TAKEOVER.PROCESS is set to Yes, no delivery message will be
produced
• To be used during take over from existing system and then set to NO
– CUST.BY.ORDER
• A Customer record to be created for the Bank using the System and input here.
Information in this field will be used in Swift messages Tag 50 – Ordering Cust
• There are some fields which are currently not in use and some are
meant for future use. Out of these, the mandatory fields can be filled
using the guidance in BRADD IM-LC and/or Model bank set-up

21
LC.TYPES

• Used to define all the types of products to be handled so that T24

can treat transactions suitably during various phases from
opening, drawing and to maturity
– Default category code
– Import or Export
– Transferable or not
– Confirmed or unconfirmed
– Documentary collection or not
– Clean credit or not
– Whether back to back
– Standby or not
– Which payment type
• Payment, Acceptance, Negotiated, Mixed, Deferred

22
LC.TYPES

• Id is user definable unique identifier 2 to 4 alphanumeric

– List of Model bank products could be reviewed and added upon
– Good to have suggestive Ids
• Import examples
– Pre-advice – LIP
– Sight unconfirmed – LISU
– Deferred payment confirmed – LIDC
• Export examples
– Sight confirmed – LESC
– Acceptance unconfirmed – LEDU
– Mixed payment confirmed – LEMC

• Category code field to indicate default Category code while inputting

– Helps grouping for reporting purpose
• Import LCs can be grouped together for reporting purposes under one category
– Cannot be modified if there are outstanding LCs under the type

23
LC.TYPES

• Document Nature
– IMPORT.EXPORT field with options I and E
• I for Import / Inward and E for Export / Outward LCs and Collections.
• Helps decide role of bank as Issuer (Import) or Advising/Confirming (Export) and
opens up fields accordingly
• Cannot be modified if there are outstanding
– TRANSFERABLE field with options No and Yes
• In Export LCs, system allows transfer to third party if opted Yes here
• In Import LCs, this prints data for Transferable LCs on Swift messages if opted
Yes here
– CONFIRMED field with options No and Yes
• For export LCs, this field will have an impact on Limit processing
• For import LCs, helps for Confirmation request to receiver - Tag 49 of MT 700
– Yes or No Option in Field STANDBY helps mapping in advices whether
the LC is a Standby LC
• As a standard feature, Yes option not allowed for Transferable and Standby
together.

24
LC.TYPES

• Document Nature
– Payment (settlement) method for product in PAY.TYPE field
• Sight payment LC P – Payment
• Acceptance LC A – Acceptance
• Deferred Payment LC D – Direct credit reimbursement
• Mixed Payment LC M – Mixed Payment
• Negotiation LC N – Negotiation
– Draw type not decided at LC stage. Appears as Mixed. Can be SP and/or AC
• Based on input for a product here, system determines Draw type to be allowed
while negotiating
– CLEAN.CREDIT field should be set to YES if the underlying LC is
meant to be handled without documents
– Back to back LCs
• BACK.TO.BACK field meant only for Export LCs
• Yes option will enable creating back to back import LCs at transaction level
• If Yes opted, then the LC.TYPE of the proposed import back to back LC to be
mentioned in field BACK.LC.TYPE

25
LC.TYPES

• Document Nature
– Field suppression
• By entering the LC application field names in field UCPDC.DEFAULT, cross
validation field defaults could be suppressed
• However, field level default is not affected by this
– Collection related
• DOC.COLLECTION field if set to YES then all processing is carried out for
Documentary collections and not LC
• CLEAN.COLLECTION field should be if set to YES if the underlying collection is
meant to be handled without documents
– Duplicate check for Export LCs
• It is possible to check for duplicate export LCs by pre-defined conditions set in
EB.DUPLICATE.TYPE
• Id of EB.DUPLICATE.TYPE records are to be mentioned in multi value Field
DUPLICATE.CHECK. Override generated even if one condition is met
– System maintains automatic Tab on Pre-advised, opened and Expired
but not closed items

26
EB.DUPLICATE.TYPE

• It is possible to set rules for checking whether a LC transaction is

likely to be a duplicate of another similar transaction by setting
rules in EB.DUPLICATE.TYPE
• Id is alpha numeric. Can be designed to reflect nature of rules
– LCEXPLC for duplicate checking in LC used for export LC
• Application for which duplicate check is intended should be
indicated in APPLICATION field
• The field values that are to be compared for determining whether
the transaction is duplicate or not are to be indicated in multi
value Field FIELDS
– If LC.CURRENCY and LC.AMOUNT are indicated, a transaction
will be termed as duplicate, if only its Currency as well as
amount are the same as of another transaction

27
EB.DUPLICATE.TYPE

• One or more records of EB.DUPLICATE.TYPE can be attached

to required LC.TYPES records
• When the first LC of the chosen type is input, System creates a
record in EB.DUPLICATE
– Id depends on Fields defined in EB.DUPLICATE.TYPE
– GBP*11000.00 if Currency, Currency and amount have been
selected
– When the next LC is input, System checks EB.DUPLICATE for
similar Id, and if present, generates override and when
approved, records details of that transaction also in
EB.DUPLICATE under the same record
• Details retained for comparison for the period defined in Field
PURGE.DAYS of EB.DUPLICATE.TYPE

28
Workshop - 1

• Set up EB.DUPLICATE.TYPE record to check duplication of

fields in APPLICANT, BENEFICIARY, LC.CURRENCY and

LC.AMOUNT in LETTER.OF.CREDIT application

29
Workshop – 1 Solution

30
Workshop - 2

• Set up a new type of LC for the following requirements:

– Confirmed,
– Export,
– Back to back payable on Acceptance in 30 days
• Create a new category code for such a product and use this as
default Category code in LC.TYPES record
• Choose an existing Import Acceptance LC Type as back to back
for this LC
• Include the EB.DUPLICATE.TYPE record set up earlier for
checking duplicates

31
Workshop – 2 Solution

32
LC.ADVICE.TEXT

• Standard documents with details required for different LCs are

stored here
• To reduce the input time while opening or amending LC, the ID of
this record can be chosen in multi value field DOCUMENT.CODE
in LC and DRAWINGS to get the document text defaulted
• ID can be upto 10 Alpha numeric characters. Advised to keep
meaningful Ids to remind the nature of documents
– PLIST, COMINV
• Desired full description can be recorded in the multi value field
NARRATIVE
– While general description could be entered in full, specific /
variable part could be marked as XXXX so that at LC level the
text could be suitably modified
• Invoices in XXXX copies indicating purchase order XXXX dated XXXX

33
Workshop - 3

• Add a new LC.ADVICE.TEXT for the following text

– 1 X 2 Packing list with full particulars (carton wise) of packing
of goods shipped.

34
Workshop – 3 Solution

35
LC.CLAUSES

• Standard clauses required for different LCs are stored in this

table.
• To reduce the input time while opening or amending LC, the ID of
this record can be inserted through Enquiry in multi value field
CLAUSES.TEXT in the LC to get the clauses text defaulted
• ID can be upto 6 Alpha numeric characters. Advised to keep
meaningful Ids to remind the nature of clauses
– NMBR, PRSNTM
• Desired full description can be recorded in the multi value field
DESCR

36
Workshop - 4

• Add a new record in LC.CLAUSES for the following clause

– Documents should be sent as two different sets

37
Workshop – 4 Solution

38
Discrepant document processing

• When documents received from negotiating bank (Import LCs) or

beneficiary (Export LCs) do not conform with LC terms, the
negotiating bank has following choices
– Negotiate and Pay
– Pay under Reserve
– Send for collection
– Reject and return
• Normally when documents are negotiated under RESERVE, the
LC issuing bank is continued to be held as the risk party.
• However, in some cases (like Major Discrepancy – External), the
negotiating bank may wish to hold the presenting person as the
risk party. This is seen in detail in the next slide

39
Discrepant document processing

YES PAY
PAY // Claim
Claim from
from
Documents REIMBURSE
REIMBURSE Issuer
Issuer
Conform to LC terms ?

NO YES Pay
Pay under
under
MINOR
MINOR Reserve
Reserve Claim
Claim from
from
Discrepancy
Discrepancy Inform
Inform only
only Issuer
Issuer
INTERNAL
INTERNAL Presentor
Presentor
NO
YES
Pay
Pay under
under
Reserve
Reserve
YES Take Inform
MAJOR
MAJOR Take Inform Issuer
Issuer
Discrepancy
Discrepancy Risk
Risk on
on Seek
Seek Instructions
Instructions
EXTERNAL
EXTERNAL Customer
Customer ??
Send
Send for
for
NO
collection
collection

40
DR.DISCREPANT.TYPE

• This table is used to define the different types of discrepancies

and rules for handling them
– Whether payment under reserve can be made for documents
under export LC and if so who is the risk party and type of
message to go and whether the discrepancy is internal or not
• Model bank has standard types for import and export. They
could be reviewed and new types created, if need be
– Authorising Reimbursement (for import) and Internal Reserve,
External Reserve, Holding of documents, On approval and On
collection for exports
• Id could be upto 13 alpha numeric
• For each type, whether for Import or Export to be indicated in No
change field INSTRUMENT.TYPE

41
DR.DISCREPANT.TYPE

• For Export documents, for each type

– Payment under reserve enabled in DRAWINGS only if field
URESERVE.REQ is set to YES
– Risk party for such payments to be indicated as Issuing Bank
or Presentor in field RISK.PARTY
– Whether giving details of internal reserve should be made
mandatory in Drawings is decided in field IN.DISCRE.REQ.
• If set to Yes, details of discrepancy should be indicated in field
IN.DISCREPANCY in DRAWINGS. This will not be communicated
– Whether giving details of external reserve should be made
mandatory in Drawings is decided in field EX.DISCRE.REQ.
• If set to Yes, details of discrepancy should be indicated in field
DISCREPANCY in DRAWINGS. This will be communicated through
advice of discrepancy through MT 750.
– Input of No / None in field DISCREPANCY will suppress MT 750 generation

42
DR.DISCREPANT.TYPE

• For each discrepant type

– Whether Tracer mechanism should be made mandatory in
Drawings is decided in field TRACE.DATE.REQ
• If set to Yes, TRACE.DATE field in DRAWINGS becomes mandatory.
– Whether LC liability should be reduced with a Drawing of this
type is decided through REDUCE.LIAB field
• Yes will reduce the LC liability with Drawing amount even though the
Drawing type is CO
• No will not reduce the liability
• Internal Ticklers can be controlled through fields TICKLER.DAYS,
TICKLER.MODE and DEFA.TICKL.TXT

43
LC.ENRICHMENT

• TF makes extensive use of short codes (O for open) to enable

fast and accurate input.
• This file holds enrichment descriptions for a variety of
Codes/Abbreviations used in L/C input which are not obtainable
from other files in T24.
• If the user desires to have different enrichment data to be
displayed when inputting transactions, then suitable changes
could be made here
• Key to alpha characters should be preceded with a dot
– .Y, .A, .P etc

44
LC.ENRICHMENT

‘ Y ’ AT DIFFERENT FIELDS GIVES

DIFFERENT ENRICHMENTS
The values in LC will have an
enrichment as specified here.
This is important as values
in LC need to conform to
SWIFT standards.

45
DR.INT.CALC.COND

• While discounting drawings, if the currency of Drawings is in

foreign currency, rules can be set here to choose method of
calculating the discount component.
– INT.CALC.CCY can either be DRAW.CCY or LCCY.
– CONV.RATE could be Buy or Sell or Mid
• If the INT.CALC.CCY is selected as LCCY, the entire Drawing amount
is converted into local currency at the rate specified in CONV.RATE.
Discount is calculated on this amount and then converted to the
Drawing currency using the same CONV.RATE
• In the absence of these rules, the discount amount is worked out
in draw currency and the local currency equivalent is calculated
by using the middle rate, if exchange rate is not input in Drawings

46
LC.TXN.TYPE.CONDITION

• Charges and commissions for each type of LC and Collection is

defined here so that the same is applied by default
• As charges and commission vary for every operation (like
opening, amending LC), the rules are set up accordingly
– Id of record is LC.TYPES-Operation / Drawing type
• LISC-O, LEXC-A, LXSC-SP, COL-AC
– Duly defined FT.CHARGE.TYPE and FT.COMMISSION.TYPE
records can be included through multi value fields
COMM.TYPES and CHARGE.TYPES
– The following fields are not currently in use
• CHARGE.PERIOD, MINIMUM.PERIOD, FLAT.CONFIRM.AMT
(now available in respective Charge / Commission types),
• CONFIR.COMM.CODE, FLAT.OPENING.AMT, and
OPENING.COMM.CODE
(now available in LC application)

47
Workshop - 5

• Create a new FT.COMMISSION.TYPE for opening LC

– 0.25% level for USD. Minimum USD 100. Maximum USD 10,000
– To be amortised over 60 months
– Charge period 3 months. Minimum charge period 3 months
• Create a new FT.CHARGE.TYPE for outward SWIFT messages
– USD 30, GBP 20
• For the Export LC type set up earlier, create a LC.TXN.TYPE.
CONDITION using the newly created Commission and Charge
types for LC opening operation

48
Workshop – 5 Solution

49
Preferential grouping for Commission & Charges

• CONDITION.PRIORITY
– Quite often banks levy commission and charges by applying
different set of rules for select groups
– To enable need based grouping for charges and commissions,
it is essential to set the CONDITION.PRIORITY file for Letter of
Credit properly
– Id of record is LETTER.OF.CREDIT.
• Subsequent changes could be made with effect from system date or
future value date for specific company or for entire system
– Any number of fields from CUSTOMER can be chosen
– The order of prioritising is set here
• Residence first, Sector next, Industry third etc

50
Preferential grouping for Commission & Charges

• LC.GEN.CONDITION
– General conditions of customers are defined to form
meaningful combination of LC charge groups, in line with the
bank’s policies
• Group 1 is of US residence, Private Sector, Software industry
• Group 2 is of US residence, Private Sector, all other industries
• Group 3 is of US residence, all sectors, Software industry
• Group 99 is of Any residence, any sector, any industry
– User definable description for each group is to be provided
– Upto 99 groups can be formed. Id is Numeric
– The system always does a best fit for every Customer based on
Customer field selections.
– Customer’s actual group is recorded in CUSTOMER.CHARGE
for all applications.
• It is possible to effect change into any other group at this level

51
Preferential grouping for Commission & Charges

• LC.GROUP.CONDITION
– For the group (s) defined under LC.GEN.CONDITION, extent of
concessions is indicated here
• Can be set for a group or for any specific Customer
– Any percentage of FT.CHARGE.TYPE and
FT.COMMISSION.TYPE could be collected for this group
(between 0 to 100%)
• Either the respective Charge or Commission could be indicated by their
Ids in the associated multi value fields or if the concession is applicable
for all Charges and Commissions, “ALL” could be indicated
– Alternately a fixed amount can also be defined which
supersedes the minimum and maximum set in respective
Charge / Commission types

52
Preferential grouping for Commission & Charges

• LC.GROUP.CONDITION - other group specific concessions

– RATE.SPREAD field to denote concessional spread for
currency exchange
• Where the absolute rate is to be applied, input should be ‘0’ (No rate
spread) and where entire spread is to be applied, input should be ‘100’
• If left blank, standard Customer spread will be assumed (as if 100%)
– PAYMENT.TYPE and CUSTOMER.FLOAT fields can be used to
denote value date dispensation for transactions that involve (i)
Foreign currency Conversion or (ii) do not involve conversion
or (iii) All transactions
• CUSTOMER.FLOAT Field value can be between 0 to 9 calendar days
or P for Processing date
• ALL and 2 mean Value date for all transactions after 2 days
– CHG.COMM.SEPARATE field to denote whether Charges and
Commission should be shown as separate entries in
statements

53
Workshop - 6

• Form a special group of Customers – VIP group in

LC.GEN.CONDITION.

• Through LC.GROUP.CONDITION, set rules to collect only 50%

of Export LC opening commission and USD 10 as Swift charges
for this group.

• Use the FT.COMMISSION.TYPE and FT.CHARGE.TYPE

created earlier

54
Workshop – 6 Solution

55
Preferential grouping for Commission & Charges

• Customer specific condition can also be set through

LC.GROUP.CONDITION with Id as C-XXXXX .
• Then, this is reflected as Actual Group in CUSTOMER.CHARGE

• They can also be stored for information in LC.CUSTOMER.

CONDITION with Id as Customer Id
– This table has additional facilities to indicate Provision related
information also
• PROVIS.ACCT, PROV.PERCENT, LC.TYPE, CREDIT.PROV.ACC
– Provision percentage could be indicated LC.TYPE wise or a common
percentage for all types by indicating DEFAULT in LC.TYPE field
• Accounts, if entered, must belong to the same customer and be in the
same currency

56
Workshop - 7

• Set the following rules for your customer in LC.GROUP.

CONDITION.
– Collect 33.33% of the Commission type set up earlier for LC
opening
– Collect USD 15 for FT.CHARGE.TYPE set up earlier for Swift
charges
• Check whether CUSTOMER.CHARGE reflects this position
• In LC.CUSTOMER.CONDITION, indicate the customer’s account
from which Provision amount is to be collected.

57
Workshop – 7 Solution

58
LC Commission & Charges

FT.CHARGE.TYPE
FT.COMMISSION.TYPE

CONDITION.PRIORITY

LC.TYPES
LC.GEN.CONDITION
Operations
Drawing Types

CUSTOMER.
CHARGE

LC.TXN.TYPE.CONDITION LC.GROUP.
CON.CUS.LINK
CONDITION
CUSTOMER.LINK
Fields
LC.CUSTOMER.
CONDITION
LETTER.OF.CREDIT
DRAWINGS

59
LC Build sequence
1. ACCOUNT.CLASS
Records Mandatory
AMORT, LCDIFF, TFLC
Optional
CUSDEBIT, BROKER

2. DR.DISCREPANT.TYPE

3. LC.ADVICE.TEXT

4. LC.CLAUSES

5. LC.ENRICHMENT

6. CONDITION.PRIORITY

7. LC.GEN.CONDITION

8. LC.GROUP.CONDITION

60
LC Build sequence

Mandatory
9. LC.PARAMETERS
Optional

10. EB.DUPLICATE.TYPE

11. LC.TYPES LC.ENRICHMENT

(Back - Back LC.TYPES)

LC.TYPES
12. LC.TYPES (Back – Back LC.TYPES)

13. LC.TXN.TYPE.CONDITION LC.ENRICHMENT

LC.TYPES

14. DR.INT.CALC.COND

15. LC.CUSTOMER.CONDITION

61
LC – Product features

62
Product features – Products handled

• All LCs and Collections handled through :

– LETTER.OF.CREDIT
• Issue Pre-advice
• Issue actual LC
• Amend LC terms and conditions
• As exporter’s Bank Advice/ Confirm the above
• Send documents for collection
– DRAWINGS
• Receive and pay drawing
• Send advice and effect a payment
• Authorise reimbursement / payment
– DRAW.NEGOTIATION
• Acts as front end for inputting mixed payment Drawings
• Linked on-line with Soft Delivery

63
LETTER.OF.CREDIT

• Handles all activities of import and export LCs and documents for
collection
– Enables pre advising , opening, advising, confirming,
amending
• Enables collection of charges
– In different currencies
– Any time
• Permits specification of exchange rate
• Supports Sight, Usance and mixed payment
– Revocable, Irrevocable
– Transferable, Non transferable
– Revolving, Non revolving
– Back to back and Standby LCs

64
LETTER.OF.CREDIT – Operation codes

• P Pre-advise LC
– Reduced amount of information allowed.
– Limit can be optionally affected
• O Open LC
– Converts pre-adviced to Actual LC or opens new LC
• A Amend LC
• C Collect charges
– Used, if not collected while at any of the above operations
• D Decision on amendments
– If amendments are proposed pending acceptance of counterparty can
be kept pending in LC.AMENDMENTS.
– After counterparty advices, decision can be effected to LC

65
Issuing Pre-Advice

• Mandatory fields / details

– Operation code to be indicated as P
– LC type to reflect suitable nature including Draw type
– Applicant details or Applicant Customer Number
– Beneficiary details or Beneficiary Customer Number
– Advising Bank details or Customer Number
• Either Beneficiary or Advising Bank or Reimbursing bank should be our Customer
– Currency and Amount
– Expiry date
• Advice expiry indicated in ADVICE.EXPIRY.DAT field and expiry date in bank’s
books indicated in EXPIRY.DATE field.
– Expiry place
– Available with details or Avail Customer Number
– PREADV.LIMIT to be set as Yes if Limits are to be checked now
• Delivery message can be viewed even before committing input

66
Workshop - 8

• Prepare a Pre-advice for your Customer on the following basis:

– Irrevocable L/c for GBP 10,000 expiring after 3 months from
today at your country
– Beneficiary – ABC Ltd
– Advising bank and available with Allied Irish Bank (Customer
Number: 100000)
– Shipment from Hong Kong to London
– Goods – Computer software
– View the delivery message MT 705 before committing. Commit
and Authorise thereafter
– View the accounting entry through

67
Workshop - 9

• Prepare another Pre-advice for your customer on the same terms

as earlier.
• Mark PREADV.LIMIT Field as Yes
• Observe the effect on Limits through Enquiry LIAB
• Drill down to Enquiries LIM.TRADE and LIM.TXN
• Look at accounting entry through

68
Opening Import LC

• LC can be opened after or without Pre-advice.

– If Pre-advice has been opened, we keep the same LC
transaction Id and thereby maintain an audit trail of LC
• LCs are issued for a particular amount. However, variations can
be indicated
– Positive and/or Negative tolerance percentage through fields
PERCENTAGE.CR.AMT and PERCENTAGE.DR.AMT.
• Limit always impacted for LC amount + Positive tolerance
– If positive tolerance is not indicated, LC amount can also be
indicated as Upto / Maximum / Not exceeding using Field
MAXIMUM.CR.AMT
– Field ADD.AMT.COVERED can be used as free text to indicate
other amounts covered – like Charges, transportation etc (Tag
39c in MT 700)

69
Opening Import LC – Basic elements

• LETTER.OF.CREDIT (1)
– Operation code - O
– Type of Credit
– Applicant
– Beneficiary
– Advising
• using ADVISING.BK.CUSTNO / ADVISING.BK
– Intermediary Bank
• using ADVISE.THRU.CUSTNO / ADVISE.THRU
– Reimbursement
• using THIRD.PARTY.CUSTNO / THIRD.PARTY

70
Opening Import LC – Basic elements

• LETTER.OF.CREDIT (2)
– Confirmation request
• CONFIRM.INST field has 3 options for sending instructions to receiver
– Confirm, May add, Without.
• Default from LC.TYPES can be over written at LC level.
• Instruction goes as Tag 49 of MT 700
– Currency, amount & tolerance
– Expiry date & place
– Tenor
– Availability
– Latest shipment

71
Opening Import LC – Basic elements

• LETTER.OF.CREDIT (3)
– Shipment details - date, port of despatch and final destination
– Description of goods
– Documents required
– Additional Conditions
– Charges
– Liability
• Import LC Issuing bank – LC Applicant is the risk party
• Export LC Confirming bank – LC opening bank is the risk party
• In addition to sanctioning Limits with / without security, also possible to
take Provision / Cash collateral

72
Workshop - 10

• Pick the first Pre adviced LC. Now open import SIGHT LC with
the following changes
– Amount increased to GBP 11,000
– Include a clause that the Documents should be sent as two
different sets by using the LC.CLAUSES set earlier
– Include the following documents as required :
• For the packing list include the text created earlier in LC.ADVICE.TEXT
– After authorisation, look at
• Delivery messages produced using Enquiry DE.MSG.LINK. In LC
record look at the fields related to Delivery message production
• Accounting entries created in

73
Workshop - 11

• Open the following types of Import LCs for USD 10000 each
expiring in 6 months. Credit available only with yourselves
– 1. Sight
– 2. Acceptance
– 3. Mixed payment –40%sight 60% acceptance 30 days from BL
date
– 5. Negotiation
• Look at the difference in Draw type related fields
• Look at the Limit Reference getting defaulted.
• Check whether this is in line with LIMIT.PARAMETER setting

74
Product features – Charges & Commission

• Other Features
– Can be collected from Opener or Beneficiary or any Third party
like Broker by using field PARTY.CHARGED
• O, B, T, CB, CO
– Can be collected in any currency at chosen exchange rate
• CHARGE.ACCT currency can be different CHARGE.CURRENCY and
LC
• CHARGE.AMOUNT can also be input with exchange rate in
CHARGE.XCHG. Otherwise system defaults mid rate of Currency
market chosen.
– Can also be input as % to LC amount
– Calculated on LC amount + Positive Tolerance

75
Product features – Charges and Commission

• Other Features
– Can be collected on any chosen amount indicated in field
CHARGE.BASE.AMT when using operation codes O and A
• Can be used to collect commission only on the increase in value while amending
– Can be amortised or accounted immediately
• AMORT.CHARGES field to be set to Yes
• Amortised over stipulated period in respective FT.CHARGE.TYPE /
FT.COMMISSION.TYPE
– Collected immediately or any time later including adhoc charge
• Later collection through Operation Code
– C in LC Take a Direct Charge / adhoc charge
– CH in DR Collection of deferred charge AC / DP

– Waived using field WAIVE.CHARGES

76
Product features – Charges and Commission

• LC.ACCOUNT.BALANCES
– Automatically created and updated for each LC and Drawing.

– Contains all authorised charges for each LC

• Collected as well as claimed

– Claimed but unpaid charges can be collected / written off here

– Closed when LC is closed

• LC closed only when there are no deferred charges

• Deferred charges reversed by indicating “R” in PARTY.CHRG field here

77
Product features – Charges and Commission

• Charge Status (LC and Drawing input)

– Blank Collect Charge at a later date (Deferring collection)
• Subsequent collection through Operation C and CH.
• LC will not be allowed to close with Blank status for any Charge
– 2 Collect charge immediately (debit charge a/c now)
– 3 Charges are claimed but not yet taken
• Claim advice is sent to party. PL credited and Receivable debited

• Charge Status (LC.ACCOUNT.BALANCES input)

– 4 Claimed charge has been settled
– 5 Claimed charge has been written off
– 7 Charge unpaid reversed
• Maintained by System when `R’ is used in PARTY.CHARG field to reverse
charges already deferred through Blank status

78
Product features – Charges and Commission

• Charge Status (During sight drawings)

– 8 Collect charges now to debit of reimbursing account
• Charges added to reimbursement claim from LC opener in case of import LC and
beneficiary in case of export LC

– 9 Collect charges now to debit of payment account

• Charges deducted from payment to beneficiary in case of import LC and opener
in case of export LC

• Charge Status (During usance drawings)

– 11 Collect charges on maturity to debit of payment account

– 12 Collect charges on maturity to debit of reimbursing account

79
Workshop - 12

• Open import sight LC for USD 15,000 expiring in 6 months.

– Positive tolerance 10%.
– Collect from your Customer (LC opener) Swift charges using
FT.CHARGE.TYPE
– Authorise and look at
• Impact on Limit
• Delivery messages
• Accounting entries

80
Workshop - 13

• Open import sight LC for USD 15,000 expiring in 6 months.

– Negative tolerance 10%.
– Collect from your Customer (LC opener) LC opening
commission using FT.COMMISSION.TYPE.
– Take this commission in USD from Customer’s USD account.
– Authorise and look at the
• Impact on Limit
• Delivery messages
• Accounting entries

81
Opening Import LC - Revolving

• Two options available

– Cumulative and Non-cumulative

• L/C USD 10000 with 3 revolutions on 15th of every month

– Monthly / Weekly revolutions always correspond with Issue Date
– Liability for every cycle is USD 10,000 while the total liability under the
LC is USD 30,000

• Under Cumulative type, un-utilised amount under a revolution period is

carried over to the next cycle
• Under Non cumulative type the un-utilised portion lapses
– Hence, choice available to impact limit only with current revolution
amount available by choosing “Single” in field LMT.FOR.REVOLVING

82
Opening Import LC - Revolving

• Input steps involved

– ISSUE.DATE and EXPIRY.DATE should be filled
• Revolutions will correspond with Issue date and Expiry date should match
revolving cycle
• The actual date of opening LC in the bank’s books (System date) is maintained in
BOOKING.DATE field. The expiry date for negotiation to be advised to
beneficiary can be input in ADVICE.EXPIRY.DAT field
– REVOLVING.TYPE, NO.OF.REVOLVING and REVOLVING.FQY should
then be filled
• CM and NC options to indicate Cumulative or Non cumulative revolving
• Number of further revolutions to be indicated as the first cycle / revolution is
automatic
• The frequency could be in Mnn or WEEKn forms
– System gives the due dates and amount of each portion in
DRAW.TYPE related fields
– Through a proper Version, Steps 1 and 2 can be listed one after the
other to ensure proper input

83
Workshop - 14

• Open at Sight import LC on the following terms:

– Face value USD 10000 expiring in 6 months

– Revolving cumulative with 2 additional revolutions

– Negative tolerance 10%

• Observe the impact on limit and accounting entry passed

84
Effecting Amendments

• Mandatory field / details

– Operation Code A
– EXTERNAL.REFERENCE field to hold Bank’s / Customer’s reference
for use in advice
• Internal
– No advices are needed to be sent now
– Fld Amendment.Del set to NO
– Amendment No. not generated
• External
– Advices are required to be sent
– Fld Amendment.Del set to YES
– May be requested only by applicant or agreed to by all the parties

85
Workshop - 16

• Make the following amendments to the Import Sight LC opened

in Workshop – 11
– LC amount increased to USD 15,000 now
– Shipment shall be from Singapore to London

• Authorise and look at the delivery message and accounting entry

passed for the increase
• Look how the limits have been affected

86
Workshop - 17

• Make the following amendments to the Import Sight LC opened

in previous Workshop.
– Indicate Customer’s USD account as CHARGES.ACCOUNT to
enable default while taking charges.
– Mark this as Internal amendment not requiring any delivery
message.

• Authorise and observe change, if any, in the Amendment No

87
Effecting Amendments – LC.AMENDMENTS

• For amendments which await Beneficiary’s concurrence,

LC.AMENDMENTS can be used.
– Id of the record is LC number. System creates A01, A02 etc.
– Status shown as Pending till approved or rejected through LC
Operation code ‘D’
• When LIMIT.UPDATE field is set to YES, the limit update takes
place, if there is upward impact due to Principal and/or tolerance
increase
– This can be seen as separate transaction in Enquiry LIM.TXN
• After the approval / rejection of the amendment, the original
transaction limit impacted.
• If the LIMIT.UPDATE is set to NO, limit update will not take place
at this stage. However, when the amendment is Approved, the
limit is updated suitably.

88
Workshop - 18

• To the LC handled in the previous workshop, make the following

amendment through LC.AMENDMENTS which is not yet
accepted by the beneficiary:
– Decrease the value by USD 1,000. Set the LIMIT.UPDATE field
to No.
– Collect SWIFT charges as USD 25. See your Charge account
getting defaulted on committing input.
– View the effect on Limits

89
Workshop - 19

• To the LC handled in the previous workshop, make another

amendment through LC.AMENDMENTS which is not yet

accepted by the beneficiary:

– Reduce the expiry date by 1 month.

90
Workshop - 20

• You have now received beneficiary’s acceptance for the first

amendment.

• Beneficiary is not agreeable for the second amendment.

• Give suitable effect in LC application through Operation D to the two

amendments made through LC.AMENDMENTS

• Find the effect on Limits and see the accounting entry for the decrease

91
Product features - Provision

• Also known as Margin or cash cover or collateral

– Can even exceed 100% of value of LC
– Calculated on LC Value + Tolerance
– Can be kept in an internal account or customer account with or
without interest
– LC.CUSTOMER.CONDITION can be used to default Provision percent
and accounts
• Provision percent could be indicated here LC.TYPE wise or a common
percentage for all types by indicating DEFAULT in LC.TYPE field
• Proportionate refund done automatically on settlements
– Can also be refunded any time earlier
• T24 allows provision collection from accounts of different currencies
– Allows specification of exchange rate when provision debit and credit
account differ.
• Customer limit can be optionally updated taking into account the
provision collected.
– Option available at LC.PARAMETERS and individual LC level

92
Workshop - 21

• Through an internal amendment, take provision of 50% for the

LC handled in the previous workshop
• Let the customer account for provision be defaulted for Credit
Provision account from LC.PARAMETERS
• Look at the accounting entries.

93
Workshop - 22

• Open a new LC for GBP 5,000. Take 60% provision from the
Customer’s USD account.

• Credit the provision to another account in USD

94
Export LC handling

• Reverse process of import LCs.

• Our likely roles
– Advising bank
– Confirming bank
– Negotiating bank
– Reimbursing bank
• Suitable LC.TYPES records needed for Advising and Confirming roles
• LC can be created manually or semi-automatically.
• Once LC is entered in our books, outward messages are issued
– MT730 for acknowledgement
– 1730 to beneficiary

95
Export LC handling – Basic elements

• Important fields / details

– Suitable LC.TYPES to reflect Export and payment type
– EXTERNAL.REFERENCE field to hold correspondent bank’s
reference
– ISSUING.BANK / ISSUING.BANK.NO to indicate the
correspondent from whom LC has been received
– Applicant is the LC applicant abroad for whom the LC is
opened
– Beneficiary is normally our Customer.
• If Customer Number not available, details can be filled in BENFICIARY
multi value field

96
Export LC handling – Basic elements

• Important fields / details

– CON.CUS.LINK is System maintained field to identify the
Customer Number used for accounting and limits processing
• For import LC, it is APPLICANT.CUSTNO
• For export LC, it is ISSUING.BANK.NO
– RISK.PARTY shows the party against whom the risk is to be
borne
• For import LC, it is APPLICANT.CUSTNO
• For export LC, this may be set as Issuing bank or Reimbursing bank, if
different. When a Customer Number is input here, this updates
CON.CUS.LINK
– RISK.COUNTRY field to denote country of Issuing bank of
export LC
• This is reflected in Enquiry LC.SUMMARY

97
Workshop - 23

• Using the export LC Type created earlier, advice the following

LC:
– LC issued by Allied Irish Bank (Customer No.100000)
– Applicant ABC Ltd
– Beneficiary – Your customer
– Amount GBP 10,000
– LC Tenor 6 months
– Collect the defaulting charges from your Customer’s GBP
account
• View the effect of Limit on the risk party and the accounting
entries passed

98
Workshop - 24

• Using the export LC Type created earlier, advice another LC:

– LC issued by Allied Irish Bank (Customer No.100000)
– Reimbursing bank American Express (Customer No.100002).
Set this bank as the risk party
– Applicant ABC Ltd
– Beneficiary – Your customer
– Amount GBP 10,000
– LC Tenor 6 months
– Claim the defaulting charges from the LC opener
• Observe whether the system is checking for possibility of
duplicate contract
• View the effect of Limit on the risk party and the accounting
entries passed for contract and Charges and Commission
claimed. Look at LC.ACCOUNT.BALANCES

99
Export LC handling– Transferable LC

• LCs can be transferred in full or in part if permitted by the issuer

– Export LC should have used LC.TYPES permitting Transfer
• Steps for transfer
– Enter and Authorise Original / Parent, transferable, export LC
– Open the transferred LC by inputting PARENT.LC No field first
– All information except beneficiary and amount will be defaulted
• Original beneficiary's name now appears as Applicant. This can be
changed
– Fill these and authorise.
• In the parent LC, the system updates TRANSFERRED.LC and
TRAN.PORT.AMT fields for information and validation

100
Workshop - 25

• Advice at Sight TRANSFERABLE Export LC in favour of our

customer for GBP 10000 issued by our Correspondent bank. Add
your confirmation. Choose suitable LC.TYPES record.
– Look at Enquiry LIM.TXN for the effect on limits of the Risk
party
• Transfer GBP 6000 of this LC in favour of a third party M/s.XYZ.
View the Delivery messages generated.
• View Parent LC after Child LC is authorised for the transfer
information recorded
– Observe Enquiry LIM.TXN again for the absence of any change
in effect on limits of the Risk party.

101
Export LC handling – Back to back import LC

• Export LC should have used LC.TYPES permitting Back to back

and indicating the import LC type
• Steps for back to back LC
– In the export LC BACK.TO.BACK field should be set to YES
• This could be done while opening export LC itself or any time later by
Amending export LC
• Back to back LC with type indicated in LC.TYPES is generated and put
on IHLD status
• This can be opened any time and fresh terms can be set up for the back
to back import LC
• Though all the terms can be changed, expiry date and amount should
not exceed the original / parent LC
• For Limit updating and accounting purposes, the import LC is treated as
a stand alone and not linked to the parent LC

102
Workshop - 26

• Advice At Sight Export LC in favour of our customer for GBP 10000

issued by our Correspondent bank.

• Use LC.TYPES record created earlier

• Open a back to back import LC for USD 5000 in favour of a third party

M/s.ABCDEFGH.

• Observe the changes in CON.CUS.LINK (Risk Party) before and after

committing the record.

• View Enquiry LIM.TXNS for the impact on limit for the import LC

103
Partial Confirmation of Export LC

• Partial confirmation occurs when a confirming bank chooses to confirm

an amount less than the full LC amount.
– Confirming bank may choose to increase this amount later during the
currency of LC
– Provision calculation on the Confirmed portion
– Available only for Non transferable Export LCs
– Bank may choose to update limits either with only the confirmed
portion or update transaction limit with confirmed portion and
information limit (or any other chosen limit) with unconfirmed portion.
– If Consolidation entries are opted for limits in CONSOLIDATE.COND,
this will appear as single entry (CONFIRM) or two entries (CONFIRM
and ADVICE portions) depending on the choice made
• Choice at LC.PARAMETERS field UNCONFIRMED.LIMIT

104
Workshop - 27

• Input Export Sight LC for USD 50,000. Choose to confirm only

USD 30000

• Collect the commission only on the confirmed portion by

indicating in CHARGE.BASE.AMT

• See how the limit is affected according to LIMIT.PARAMETERS

choice

105
Drawings – Product features

106
DRAWINGS

• When documents received from negotiating bank (Import LC) or

beneficiary (Export LC) conform with LC terms, accepted for
Negotiation and input through DRAWINGS application
• Drawings support
– Sight, Acceptance, Mixed, Deferred payments
• Payment to NOSTRO / Customer account or payment by cheque,
Bankers cheque etc.
• Release of provision automatically with an option for the user to control
the amount and the account.
• Collection of charges with options
– Now or later for other than Sight payments
– Exchange rate

107
Drawings – Basic elements

• DRAWINGS
– Id is the LC No. System generates Drawing sequence No. and
outstanding under LC
– Currency and amount of documents
• Can be different from LC and draw down currencies
– Value date of payment
• Current, future or back valued
– Details of payment – Payment methods N, IT, BP, CH
– Charges
– Fully utilised
– Liability
• Limits can be set separately for Opening LC and Usance Drawings
• Also possible to define default limits where the Usance drawings uses LC
opening limits. If so, Drawings application need not be set in LIMIT. PARAMETER
• Provision release proportional. But can be optionally regulated

108
Drawing Types

• Drawing Types
– SP Sight payment
• Payment / reimbursement made on value dates
– AC Acceptance
– DP Deferred Payment
• If funds are required to be paid before maturity date in Usance drawings, then
they can be discounted and paid. Payment made on value date but
reimbursement obtained on Maturity Review date
• Maturity of usance drawings is automatic when it is import and in case of export
when discounted and / or when CONFIRM.INST field in LC is CONFIRM.
– RP Release Payment
• In Export LC, acknowledges documents are presented as per LC terms (MT 754)
and generates claim for reimbursement (MT 742)
– CH Collection of deferred charge in AC/DP

109
Drawing Types

• Amendments to existing Drawings

– MA Matured Acceptance
– MD Matured Deferred payment
• For usance drawings, once maturity review date is reached and the
drawing undergoes maturity processing, Drawing type changes from AC
to MA and DP to MD indicating that the deals are now matured and paid
– Happens for import LC
– Export usance discounted drawings and
– Confirmed export LC
• Manual maturing needed for others.
– AD Amendment to SP / MA / MD drawings
• Limited scope for amending SP drawings.

110
Drawing handling

• Steps
– Id is the LC No.
• System generates Drawing sequence No. and outstanding under LC
– Payment method to be indicated as N, IT, BP, BC
• DRAW.DOWN account and PAYMENT.ACCOUNT (for BP / BC default from
LC.PARAMETERS)
• Account numbers of Applicant, Reimbursing , Advising bank, if mentioned in LC
used for Draw down
– For Sight drawings,
• If DR.DEBIT.TO.CUST is set as Not Debited, then Internal suspense defined in
ACCOUNT.CLASS as CUSDEBIT used. Could then be discounted till
MATURITY.REVIEW date. Limit will be restored only after that.
• DEBIT.VALUE for actual debit to DRAW.DOWN account
– For Acceptance drawings,
• MATURITY.REVIEW field to indicate when the accepted documents are due for
payment
• Debit and Credit value dates will be same

111
Drawing handling – Different currencies

DRAW.CURRENCY

RATE.BOOKED Treasury rate. TREASURY.RATE

If not input,
Mid Reval rate used

RATE.SPREAD Trade Finance CUSTOMER.SPREAD

Department spread

DEBIT.CUST.RATE CREDIT.CUST.RATE

DRAWDOWN.ACCOUNT PAYMENT.ACCOUNT

112
Workshop - 28

• For the import sight LC opened in Workshop – 12 for USD

15,000 effect a suitable drawing for USD 16,000.

• Mark it as NOT fully utilised

• View the impact on Limits and accounting entries

113
Workshop - 29

• For the same import LC, input another drawing for USD 200.
• Let the value date of drawings be after 3 days while the debit value date
is tomorrow
• Mark it as fully utilised.
• Collect SWIFT charges created earlier @ 5% of drawings from the LC
opener
• Before authorisation
– Accounting entries prepared through Enquiry NAU.ENTRY
– Impact on limits

• After authorisation look at the actual accounting entries

114
Workshop - 30

• For the import Acceptance LC opened in Workshop – 11 for USD

10,000, input a drawing for the full amount with suitable Maturity
Review date.
• Use your customer’s GBP account for reimbursement
• Collect LCOPENING commission created earlier from the proceeds
from beneficiary of LC
• Before authorisation, look at
– Accounting entries prepared through Enquiry NAU.ENTRY

• After authorisation look at the actual accounting entries and impact on

limits for Acceptances by drilling down from Enquiry LIAB

115
Product features – DRAW.NEGOTIATION

• In DRAWING application, sight and acceptance portions should be

input in different drawings as they fall under different draw types.

• In DRAW.NEGOTIATION both are input together and System

generates the Drawings on hold

• Steps for input

– Id format DNSSDDDNNNNN.
• DN0133500001 comes as DN01-335-00001

– Enter details of a Mixed payment drawing in DRAW.NEGOTIATION

– Once the ‘Discrepant Status’ field is set to ‘SETTLED’, T24 will

generate the related Drawings files in IHLD status

– The Drawings will require completion and authorisation

116
Workshop - 31

• For the import Mixed payment LC opened in Workshop – 11 for USD

10,000, open records for Negotiation through DRAW.NEGOTIATION on
the following terms
– Documents received for USD 8,000
– Sight portion USD 5,000 (at variance to LC terms)
• Check the override in this regard
– Acceptance portion USD 3,000
• Check whether the System permits you to give different ACCPT.PERIOD from
LC terms
• Payment value date to be 45 days from now
– Indicate the documents received by using the LC.ADVICE.TEXT
created earlier
– Mark the Discrepant status as settled
– Authorise and check whether the drawing records have been created
through Enquiry %DRAWINGS$NAU

117
Workshop - 32

• Input a drawing for the export LC opened in Workshop – 23

– Usance payable after one month
– Fully utilise the LC amount
– Payment by debiting Nostro account and crediting customer
account with you
• Look at the accounting entries and the effect on limit for
Drawings

118
Workshop - 33

• Mature this drawing on-line by suitably changing the Draw type

field
• Look at the preview message to the customer
• Look at the accounting entries and effect on limits

119
Drawings in Transferable LC

• Method 1
– Can be input directly in the child LC itself.
– Outstanding amount in Parent LC will get affected suitably
• Method 2
– Authorise drawing in parent LC
– Then input this drawing number in PARENT.DRAWING field in
child drawing
– All information is defaulted
– Amend account numbers and amount and authorise
– Meets the requirement to show money passing through first
beneficiary’s account

120
Workshop - 34

• Open at Sight transferable Export LC for GBP 12,000 and transfer GBP
8,000 to another beneficiary.
• View the effect on parent LC after transfer and its limits.
• Using method 1,
– Input a drawing directly into the child LC for GBP 2,000 and authorise.
– Collect SWIFT charges of GBP 20 from the opener.
• Look at the effect on parent LC and its limits
• Using method 2,
– Input a drawing through Parent LC into the child LC for GBP 3,000.
– Look at the effect on parent LC and its limits

121
Product features – Discounted Drawings

• Beneficiary of an Export Usance transaction may wish to receive

funds in advance of maturity date.
• Bank may discount the drawing and pay the proceeds to them
after collecting discount charges for the remaining period.
– At maturity, the Issuing / Remitting bank will reimburse
beneficiary’s bank.
• Discounted through DR application by giving details of
– Discount rate / Discount amount
– Load rate / Load amount for Treasury or Marketing Department
• Details maintained in LC.DISCOUNTED.BALANCES

122
Workshop - 35

• Input export LC for GBP 6,000 payable 6 months after

acceptance.
• Discount this LC in full @5% for 6 months.
• Collect a load of 1%.
• Look at the accounting entries
• Look at system maintained LC.DISCOUNT.BALANCES

123
Product features – Amendments to Discounted drawings

• It is possible to amend some features of the discounted drawings

through DR.DISC.AMENDMENTS
– Maturity dates could be changed
• With this, discount and load rates can be changed
• Excess discount can be retained or returned
• Excess discount retained in internal account defined in
LC.PARAMETERS
– DIS.RETAIN.CODE field

• LC.DISCOUNT.BALANCES keeps track of these changes also

124
Workshop - 36

• For the LC discounted earlier, the usance period is now 9

months.
• The corresponding discount rate is 6% while load remains the
same. The new rates are effective after 15 days.
• Effect the amendments to collect the additional discount from
customer.
• Look at the delivery preview message.
• View the changes in LC.DISCOUNT. BALANCES after
authorisation

125
Product features – Discounting sight drawings

• The exporter is normally paid when he submits the documents for

negotiation while the importer would expect his account to be debited
only after the documents are sighted
– There could be transit time taken for the documents to reach the
importers bank from the exporters bank.
• Possible to give a future DEBIT.VALUE.DATE
– Also possible to discount the sight bills and pay the exporter’s bank
• To handle such a situation, while inputting a drawing, the field
DR.DEBIT.TO.CUST should be marked as NOT DEBITED
• Discount details are to be entered
– Field DIS.PARTY.CHRD to be used to indicate who will bear the
charges – Beneficiary or Opener
• System debits the internal account defined in ACCOUNT.CLASS as
CUSDEBIT instead of Customer account to make payment
– Interest calculated from DISC.EFF.DATE to MATURITY.REVIEW

126
Workshop - 37

• For the import sight LC opened in Workshop – 11 for USD 10,000 and
amended subsequently, input a sight drawing for GBP 6,000.
• Mark it as NOT fully utilised
• As it normally takes 1 week time to receive documents, deduct discount
for this period @8% from the proceeds. Beneficiary to bear this.
• Mark DR.DEBIT.TO.CUST field as NOT DEBITED.
• Release provision only to the extent of USD 1,000 now.
• Indicate Treasury rate as 1.7 and TF Department spread as 0.3 so that
the effective DEBIT.CUST.RATE is 2. Observe the marketing exchange
profit of TF Department
• View the impact on limits and accounting entries

127
Product features – Settlement of Discounted sight drawings

• Final settlement is effected through DR.DISC.AMENDMENTS

– Two options available in DR.DEBIT.TO.CUST field for on-line or
back value dated closure - DEBITED and TRFLOAN
• Debit Customer account or convert the same into loan by back value
dating, if needed.
• While debiting customer account, if value date is earlier than maturity
review date, it is possible to return un-amortised portion of discount or
retain the same
• When converted into loan, drawdown account of loan to be mentioned
as settlement account of discounted drawings. In this case, the entire
interest component, already amortised as well as pending amortisation,
is credited to the account of the Discount party charged.
– As such loans will be back-valued, the customer would not be charged twice
• Extension of discounted period, if need be, also possible here

128
Product features – Tiered rates for Discounted Drawings

• Instead of uniform load rate, it is possible to apply tiered interest

rate using PERIODIC.INTEREST for sight and usance
discounted drawings
– First 1 day 5%
– Next 30 days 5.5%
– Rest 6%
• The rate and routine to be used is set in LC.PARAMETERS
• In Drawings,
– Currency to be referred is indicated in CURRENCY.REF field
– Bid or offer rate can be chosen through INT.MLR.MOR field
– Period determined by the difference between
DEBIT.VALUE.DATE and MATURITY.REVIEW.DATE fields
• Possible to give grace time by setting a future DEBIT.VALUE.DATE

129
Product features – Exchange rates for Discounted drawings

• When the draw currency is not local, the discount amount is

worked out in draw currency and the local currency equivalent is
calculated by using the middle rate, if not input in Drawings
• Alternately, INT.CALC.COND field can be used to apply relevant
rules of DR.INT.CALC.COND application
– Method of calculation of Discount component could be based
on the Drawing Currency or the Local Currency and the rate
applicable on that amount could be Buy, Sell or Mid rate
– When DISCOUNT.AMT is input (sans rate), this field accepts
only those Id of DR.INT.CALC.COND that have DRAW.CCY as
INT.CALC.CCY.
– Input cannot be changed once the Drawing is authorized.

130
Product features - Broker

• Broker is an agent or middleman between the importer and

exporter

• Gets fee or commission from LC Drawings amount as a % or flat

amount

• Should be valid entry in BROKER table

• Brokerage can be settled in any currency

• Settled through BROKER.CODE and broker related fields in

Drawings

131
Workshop - 38

• Effect drawings of GBP 5,000 on the Deferred payment LC

opened in Workshop – 11.

• Pay brokerage of 5% to an authorised Broker

132
Product features – Assignment of Proceeds

• A beneficiary may like the bank to set aside a part (or full) of the
proceeds to one or more persons. Done through multi value
Assignment fields while opening LC.
– Generally done in export LC. T24 allows assignment in import LC also
• Allows payment to multiple parties and/ or multiple accounts of same
party with a facility to specify exchange rate for each credit
• Actual assignment and payment of proceeds happens only during
drawing by referring to the assignment(s) marked in LC
– To indicate DOCUMENT.AMOUNT and BEN.DRAW.AMT. System
calculates TOT.ASSN.AMT
– Possible to specify and/or change assignment during drawing
– Wherever an assignee has not been specified in the LC but has to be
introduced in DRAWINGS, reserved word “TPPAY” can be used in the
field ASSIGNMENT.REF
• ASSN.AMOUNT field should indicate amount in DRAW.CURRENCY

133
Workshop - 39

• Effect another drawing of USD 2,000 in the previous LC.

• Indicate BEN.DRAW.AMT as USD 500.

• Assign USD 1,500 to a third party

134
Product features – Multiple debits in drawings

• We have seen that through Assignment, we can have Multiple payment

accounts at different exchange rates
• With the same Assignment related fields, it is also possible to have
multiple draw down accounts with different exchange rates
• To use multiple debits from one or multiple customer accounts at
different exchange rates
– Field APP.DRAW.AMT in Drawings to be used to indicate the amount
to be used from DRAWDOWN.ACCOUNT
– When this amount is less than the DOCUMENT.AMOUNT, System
populates the balance as MULTI.DR.AMT
– Reserved word “TPRECV” can be used in the field ASSIGNMENT.REF
to debit several accounts with different exchange rates.
• ASSN.AMOUNT field should indicate amount in DRAW.CURRENCY

135
Workshop - 40

• In workshop – 31, through DRAW.NEGOTIATION we have kept

two drawings in IHLD status in DRAWINGS.
• Take up the sight portion of that Drawing now for USD 5,000
• Out of that let the Drawdown account of the Customer be debited
with USD 1,000.
• Using ‘TPRECV’ use another account in GBP to debit the
balance amount of USD 4,000 at a special exchange rate of 2.
• Look at the accounting entries for multiple debits and credit after
authorisation

136
Collections – Product features

137
Collection handling

• Inward and Outward

– Inward similar to handling import LC and outward like export
LC without any obligation for the involved banks to pay
• Clean and Documentary
– Sight
– Acceptance
• Handled through suitable LC.TYPE in LETTER.OF.CREDIT
application
– CIC - Inward Clean Collection,
– CEC - Outward Clean Collection,
– CIA - Inward Doc. Collection with terms,
– CEA - Outward Doc. Collection with terms

138
Collection – Basic elements

• Collections
– Handled through LC and Drawings applications
• Basic elements
– Drawee / Buyer
• Applicant field (Inward collection) Beneficiary field (Outward collection)
– Drawer / Seller
• Applicant field (Outward collection) Beneficiary field (Inward collection)
– Collecting Bank
• Issuing Bank fields used to denote the counterpart bank
– Currency and amount
– Tracer
• Expiry date triggers Tracer action
– Document details
– Charges
– Limits
• Information purpose limits can be used

139
Workshop - 41

• Send a Sight bill for USD 10000 on clean collection basis on

behalf of your customer to your correspondent bank.
• Using the LC opening commission type set up earlier, collect
your collection charges from your customer immediately.
• Check from LC.ACCOUNT.BALANCES whether it has been
collected
• Through Delivery preview, view the Delivery advice.

140
Workshop - 42

• Payment for the above collection is now available.

• Input suitable drawings to credit the proceeds to our customer

141
Workshop - 43

• Send an acceptance bill with documents for USD 9000 for

collection. It is payable 3 months from date.

• The bill has been accepted for payment as per terms.

• Input suitable drawings and authorise.

• The payment has been received. Change the Draw type to MA

and authorise payment.

• Look at the accounting entries at every stage

142
Product features – Amendments to collection

• When export documents are sent for collection, if the importer

does not take delivery, the exporter tries to find a new buyer

• This may necessitate changing the issuing and/or reimbursing

bank also in addition to changing the beneficiary.

• The RISK.PARTY field could be left blank if the counterparties

are not our Customers

• By effecting these changes, the limit set against the issuing /

reimbursing bank changes. They may or may not be customers

143
Workshop - 44

• Send a Sight bill for USD 5000 on clean collection basis on

behalf of your customer to your correspondent bank. See the
impact of LIMIT

• Amend the above bill. Change the beneficiary and issuing bank.
Both are not customers now. Leave the RISK.PARTY field
blank.

• See whether the limit impact has now changed

144
Product features – Collection Tracers

• An extra feature not used by other LC Transactions

• Helps automatic following up collection documents at periodic intervals
by way of reminders / tracers
– Automatic generation of Tracers during COB
• Default period to define frequency of sending tracer may be set in
Country Table
• Country of Issuing Bank (for export collections) and applicant (for
import collections) is made applicable
• Alternately, can be set in EB.FREE. PARAMETERS. Frequency may
be changed in EB.FREE.MESSAGE
• Manual operation using Operation code T. Tracer date and further
frequency with Bank to Bank message can be set

145
Workshop - 45

• Input a Customer Number for the collecting bank for the

collection used in the previous workshop.
• Send a tracer to the bank and set the frequency for further
Tracers as 3 working days
• View the message through Delivery Preview

146
Discrepant document processing

• We have seen earlier the steps in discrepant processing and options

available to handle them.
– If the documents conform to LC terms, treat them as normal drawings
– If there is discrepancy, treat them as collection instrument
• If there is slight discrepancy, pay and record them as Internal discrepant for your
records. Choose who is the risk party in DR.DISCREPANT.TYPE
• If there is major discrepancy, treat them as external discrepant.
– If you desire to pay, then only under reserve but seek confirmation
– If you do not want to pay, send on mere collection and wait till you hear
– Reject documents outright
– Operation codes used for collection in case of discrepant documents
are
• Drawings : CO - To send discrepant docs for collection.
SP / AC – To record payment by counterparty
• Amendments: CC - To chase collections. CR - To indicate rejection and
FR - Final Rejection

147
Discrepant handling steps

• In case of internal discrepancy, treated as normal negotiation

– Type of discrepancy and details recorded in Fields
DISCREPANT.TYPE and IN.DISCREPANCY

• When it is decided to send discrepant document in collection,

then it should be recorded as CO in DRAWING.TYPE.
– The type of discrepancy and its details must then be recorded

• When payment is realised, the Original CO is changed to SP

• If rejected, CO is changed to CR and later to FR

148
Workshop - 46

• Advice at Sight export LC to your customer for USD 12,000 to

supply 1000 Nos. Super Computer software.

• Documents required are

– Packing list 3 copies

– Bill of Lading 3 sets

– Certificate for country of origin

149
Workshop - 47

Your customer has shipped in 4 batches

• For the first batch, as there is no discrepancy, Pay him USD

4000 and claim reimbursement

• Look at the Delivery preview messages before committing.

150
Workshop - 48

• The second batch is for USD 2000. It has the following

discrepancy – PL only 2 sets. Treat it as a internal discrepancy.
Pay USD 2000 and claim reimbursement

• Look at the preview delivery message

• Look at the accounting entries after authorising

151
Workshop - 49

• The third batch has only 2 sets of BL. Treat it as external

discrepancy. Pay USD 2000 under reserve.
• Inform importer’s bank
• Look at the accounting entries after authorising

152
Workshop - 50

• The fourth batch has the following discrepancy – Certificate of

origin not provided.
• Treat it as external discrepancy and send for collection for USD
4000 without paying
• Look at the accounting entry after authorisation

153
Workshop - 51

• You have now received message from the beneficiary’s bank that
the discrepancy for the third batch is acceptable whereas the
fourth batch documents are not acceptable.

• (The second batch has been reimbursed)

• Effect necessary action

154
Product features – Trust Release

• When a discrepant document is received under Import LC, the Bank,

at its discretion, may release the document prior to receipt of the
payment.
– At this juncture, the Bank records delivery of the document in a
Trust delivery receipt, has the same acknowledged by the
Importer.
– The same may also happen for Import Collection documents
– Possible to allocate distinct risk product through
LIMIT.REFERENCE and LIMIT.PARAMETER (by using Decision
field as TRUST.REL and Decision as RELEASE for LC as well as
Drawing applications)
• TRUST.REL field used in LC application for Inward collections and
Drawings application for Import LCs

155
Product features – Trust Release

• Field TRUST.REL should be set to RELEASE while releasing the

documents to drawee
• If the documents are accepted, then the value here should be
changed to ACCEPT and subjected to further processing
• If the drawee rejects the documents, then the value here should
be changed to REJECT. The Draw type should be changed as
CR and while returning the documents back as FR.
– Whenever documents are accepted under trust, the system will
hit the trust limit set up in LIMIT.PARAMETER. Also instead of
the normal COLL contingent entry, system will create a
contingent entry with TRCOLL.

156
Workshop - 52

• For the mixed payment LC opened in workshop – 11, input a

drawing now for USD 3,000.
• As discrepancy is observed (Invoice details not matching LC
terms), let the Draw type be CO.
• Release the documents under Trust to your customer
• Your customer is not satisfied with the discrepancy and is not
willing to pay.
• Hence reject and return the documents

157
LC Other features

158
SWIFT messages supported

SWIFT Description Application / Field Name

MT 700 Issue of Documentary credit LETTER.OF.CREDIT
MT 701 OPERATION ‘O’
MT 705 Pre advice of Documentary LETTER.OF.CREDIT
credit OPERATION ‘P’
MT 707 Amendment to Documentary LETTER.OF.CREDIT
credit OPERATION ‘A’

MT 710 Advice of a Third bank’s LETTER.OF.CREDIT

MT 711 Documentary credit ADVICE.THRU.CUST.NO NE‘’

MT 720 Transfer of Documentary LETTER.OF.CREDIT

MT 721 credit
MT 730 Acknowledgement LETTER.OF.CREDIT Available for Outward
OPERATION ‘O’ message
MT 734 Advice of refusal DRAWINGS Available for Outward
DRAWING.TYPE ‘CR’ message

159
SWIFT messages supported

SWIFT Description Application / Field Name

MT 740 Authorisation to reimburse LETTER.OF.CREDIT Available for
OPERTION ‘O’ ; Outward message
THIRD.PARTY.CUST.NO NE‘’
MT 742 Reimbursement claim DRAWINGS Available for
DRAWING.TYPE ‘SP’/’AC’/’DP’ Outward message
MT 747 Amendment to authorisation LETTER.OF.CREDIT Available for
to reimburse OPERATION ‘A’ ; Outward message
THIRD.PARTY.CUST.NO NE ‘’
MT 750 Advice of discrepancy DRAWINGS Available for
DRAWING.TYPE ‘CO’ FIELD 33 Outward message
NE ‘’
MT 752 Authorisation to Pay, Accept DRAWINGS Available for
or Negotiate DRAWING.TYPE ‘CO’ TO ‘SP’ Outward message
MT 754 Advice of payment / DRAWINGS Available for
acceptance / negotiation DRAWING.TYPE ‘SP’/’AC’/’DP’ Outward message
MT 756 Advice of reimbursement or DRAWINGS Available for
payment DRAWING.TYPE ‘SP’/’AC’/’DP’ Outward message

160
SWIFT messages supported

SWIFT Description Field Name

MT 400 Advice of payment Available for Outward
message
MT 405 Clean collection Available for Outward
message
MT 410 Acknowledgement

MT 412 Advice of Acceptance

MT 420 Tracer Available for Outward

message
MT 430 Amendment of instructions Available for Outward
message
MT 490 Advice of charges, interest Available for Outward
and other adjustments message

161
SWIFT messages supported

SWIFT Description Field Name

MT 491 Request for payment of Available for Outward
charges, interest and other message
adjustments
MT 492 Request for cancellation Available for Outward
message
MT 495 Queries Available for Outward
message

MT 496 Answers Available for Outward

message

MT 499 Free format message

162
LC System maintained tables

• Some important System Maintained tables

– LC.APPLICANT
• Customer wise list of applicants
– LC.BENEFICIARY
• Customer wise list of LC beneficiaries
– LC.DISCOUNT.BALANCES
• LC wise discounted drawings
– LC.ISSUING.BANK
• Customer wise details of Issuing Bank for Export LCs and export
collections
– LC.NEGOTIATE
• LC wise details of DRAW.NEGOTIATE

163
LC System maintained tables

• Some important System Maintained tables

– LC.PARENT.DRAW
• LC wise list of Drawing in Child LC done THROUGH Parent LC
– LC.REVOL
• Due date wise list of Revolving LCs
– LC.TRANSFERABLE
• Parent wise list of Child LCs
– LC.ACCOUNT.BALANCES
• Live LCs, Currency and date wise
• Entire history of Charges and payments

164
LC Standard enquiries

• LC.SUMMARY
– Overview of an individual LC including its drawing history

• LC.REIMBURSE.CLAIM
– Overview of drawing wise reimbursements due

• LCAC.CHARGES
– Details of charges amortised – LC wise

• LC.HIST
– Complete history of LCs

165
LC Standard reports

• LCS.BY.EXPIRY
– LCs by expiry date

• LCS.BY.RSKPTY
– LCs by risk party

• LC.DRAWINGS
– List of drawings of the day

• LC.ACPT.DUE
– Acceptances and deferred payment report

166
LC Dependency diagram

LC.PARAMETERS
BASIC.RATE.TEXT
LC.TYPES
INTEREST.BASIS
LC.ENRICHMENT
PERIODIC.INTEREST
LC.CLAUSES
CUSTOMER
LC.ADVICE.TEXT
CATEGORY
FT.COMMISSION.TYPE
DR.DISCREPANT.TYPE
ACCOUNT
FT.CHARGE.TYPE
CURRENCY
NOSTRO.ACCOUNT
LC.TXN.TYPE.CONDITION LC
ACCOUNT.CLASS LC.GEN.CONDITION

LIMIT LC.GROUP.CONDITION
COLLATERAL LC.CUSTOMER.CONDITION
LC.ACCOUNT.BALANCES
LC.DISCOUNT.BALANCES
EB.ACTIVITY LC.APPLICANT
EB.ADVICES LC.BENEFICIARY

167
Summary

• We have so far seen

– the dependencies and linkages between LC module and T24

Core and other applications

– main business features of the LC module

168