There is a necessity for each banks involved in processing trade finance transactions [Import/Export LC, Standby LC/Guarantees, Financing and so on], to record their risks (Liabilities) as a booking entries in the system. This liabilities need be maintained by the banks in their balance sheet in the form of accounting entries. And thus the banks need to maintain in system for the risk parties (Applicants/Beneficiary's/any parties) with different account types for the different default liabilities on various life cycle of business transactions.
First step is to create the new party in the system - Customers/Beneficiaries/Parties - DBIPTY
To create a account in Doka - How to Create a Account in DOKA?
The various account types that are defined in the system - Account Types
The main account types that are to be used by the party for the business transactions will be EN, CN, AC, DPF, G1/G2, IT, LO, FN, NO. This different accounts needs to be configured in the DBIACT transaction. Please refer the above article on creation of accounts.
We can see in detail how these account types are used in the various business module transactions,
Import LC
| Transactions | Business transaction | Type of Liability | Account type |
| LITOPN | Opening an Import L/C | AVL |
Dr - EN [Liability Party Account] Cr - CN [Liability Bank Contra Account] |
| LITDCK | Receiving Documents | INT | No Liability recorded |
| BRTPAY | Send, Accept and Settle Documents | For Sight LCs | Cr - EN [Liability Party Account] Dr - CN [Liability Bank Contra Account] |
| For Usance LCs: AKZ [Acceptance] | Dr - AC [Acceptance Account] Cr - CN [Liability Bank Contra Account] The opening entries will get reversed. | ||
| For Usance LCs: DPZ [Deferred Payment Obligation] | Dr - DPF [Def Payment Account] Cr - CN [Liability Bank Contra Account] The opening entries will get reversed. | ||
| BRTSUS | Settle Usance Documents at Maturity | AKZ [Acceptance] | Cr - AC [Acceptance Account] Dr - CN [Liability Bank Contra Account] |
| DPZ [Deferred Payment Obligation] |
Cr - DPF [Def Payment Account] Dr - CN [Liability Bank Contra Account].
|
Export LC
| Transactions | Business transaction | Type of Liability | Account type |
| LETOPN | Advising / Confirming | INT [Advising] | No Liability recorded |
| AVL [Confirming] | Dr - EN [Liability Party Account] Cr - CN [Liability Bank Contra Account] | ||
| AVS [Silent confirmation liability] | Dr - EN [Liability Party Account] Cr - CN [Liability Bank Contra Account] | ||
| LETDRV | Receiving Documents | INT [Internal] | No Liability recorded |
| BETPAY | Send, Accept and Settle Documents | For Confirmed Sight LCs | Cr - EN [Liability Party Account] Dr - CN [Liability Bank Contra Account] |
| For Confirmed Usance LCs: AKZ [Acceptance] | Dr - AC [Acceptance Account] Cr - CN [Liability Bank Contra Account]. The opening entries will get reversed. | ||
| For Confirmed Usance LCs: DPZ [Deferred Payment Obligation] | Dr - DPF [Def Payment Account] Cr - CN [Liability Bank Contra Account]. The opening entries will get reversed. | ||
| BETSET | Settle Usance Documents at Maturity | AKZ [Acceptance] | Cr - AC [Acceptance Account] Dr - CN [Liability Bank Contra Account]. |
| DPZ [Deferred Payment Obligation] | Cr - DPF [Def Payment Account] Dr - CN [Liability Bank Contra Account]. |
Guarantee/Standby LC
| Transactions | Business transaction | Type of Liability | Account type | Party | Guarantee undertaking type |
| GITOPN | Creating a Guarantee | AVL[Issuance - ISSU,ISCO & ICCO] | Dr - G1 [Guarantee Account] Cr - IT [Guarantee Liability Account] | Applicant | Advance Payment, Bid Bond, Performance Bond, Warranty Bond, Payment Guarantee(Goods /Service), Documentary Credit, Direct Pay(Reinstatement) |
| AVL [Issuance - ISSU,ISCO & ICCO] | Dr - G2 [Credit Card/Payment Account] Cr - IT [Guarantee Liability Account] | Applicant | Credit Guarantee, Credit Facilities Guarantee & Payment Guarantee(Financial /Other) | ||
| INT [Advising - ADVI] | No Liability recorded | ||||
| GITCRQ | Receiving a Request of a Claim | INT | No Liability recorded | ||
| GITSET | Paying a Claim | AVL | Cr - G1 [Guarantee Account] Dr - IT [Guarantee Liability Account] | ||
Advance
| Transactions | Business transaction | Type of Liability | Account type | Party |
| BPTOPN | Advancing a Document Set | FIN [Financing Liability] | Dr - FN [Financing Account] Cr - IN [Internal Account] / LO [Current Account / DDA] / NO [Nostro Account] | Advanced Party |
| BPTSET | Settling an Advance | FIN [Financing Liability] | Cr - FN [Financing Account] Dr - IN [Internal Account] / NO [Nostro Account] | Advanced Party |
| BPTCRF | Repayment / Recourse | FIN [Financing Liability] | Cr - FN [Financing Account] Dr - IN [Internal Account] / LO [Current Account / DDA] / NO [Nostro Account] | Advanced Party |
Loans
| Transactions | Business transaction | Type of Liability | Account type | Party |
| TRTOPN | Creating a Loan | FIN [Financing Liability] | Dr - FN [Financing Account] Cr - IN [Internal Account] / LO [Current Account / DDA] / NO [Nostro Account] | Financed Party |
| TRTSET | Repaying a Loan | FIN [Financing Liability] | Cr - FN [Financing Account] Dr - IN [Internal Account] / NO [Nostro Account] | Financed Party |
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