A Usance or a Deferred Letter of Credit is also called as Term Letter of Credit.
The Letter of credit that is payable at a predetermined or future point following the conditions in the LC being fulfilled and the confirming documents being presented.
The Letter of Credit will set out the time to maturity and the actual payment date.
The Usance document sets are only Settled at the Maturity. If several maturities have been posted to a document set, the system automatically proposes the next maturity for settlement.
The 'Final Settlement' for an Import Usance L/C Document Set will happen only on the Maturity time. In BRTPAY transaction(Send, Accept and Settle Documents), the documents are accepted, the appropriate maturity is booked in and only a temporary settlement is generated.
A 'peak amount' is the remaining liability balance under a Letter of Credit that remains unutilized after payment of documents.
The checkbox 'Book out Peak Amount' can be activated when documents are taken up.
If set, the application checks the contract for other pending document sets and calculates the
liability amount which should be booked out under the Letter of Credit. The calculation of the
amount is displayed in the warnings for the user.
The contract is closed when the settled amount matches the open amount. If there are several maturities in a document set for a contract, this means that the contract is only closed when the last maturity is settled.
To Settle Usance Documents at Maturity under an Import L/C , BRTSUS transaction is used.
Select it from the menu item[Import Products -> Import L/C -> Documents -> Settle Usance Docs at Mat.].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.