The 'Assignment of Proceeds' means when a beneficiary of an Export L/C transfers/assigns all or part of his proceeds(Amount) from the Export L/C to other parties at any time during the term of the contract without having to initiate the amendment transaction. Assignments to up to 10 third parties (roles TP0-TP9) may be entered for each contract.
This type of transaction is used in a number of circumstances, such as when paying suppliers or vendors, or when settling outstanding debts.
The assignment is made directly when opening the Export L/C contract.
Creating an assignment:
To create an assignment, only the party and the amount for the assignment need to be recorded in the Assignment of proceeds panel.
The assignment amount can be captured in the Amount column. The application uses this to automatically to compute the percentage share of the assignment.
Alternatively, a percentage may be entered and the application will then compute the assignment amount.
If a percentage is entered, then it will apply to the contract, that means in the course of amendments at a later date, the assignment amounts will automatically be posted according to the relevant percentage share.
Amending an assignment:
The assignment may be amended in Export L/C Amendment transactions as well. An assignment amount already registered is displayed in the Assignment of proceeds panel in the Old amount column.
An increase or reduction of the assignment already registered can be made by entering the value that was used while creating the assignment.
This means that if the assignment was created by entering an amount in the Amount column, the change can be made only by entering a positive or negative amount.
If the assignment was created by entering a Percentage, the value must be changed using the Percentage column.
Deleting an assignment:
The deletion of an assignment is possible in all transactions in which the assignment panel is available. In order to delete an existing assignment, all that is necessary is to click the [ Reverse] button on the
Assignment Details panel of the assignment line. As a result, the existing amount in the Old amount column is entered in the Amount column preceded by a minus sign and is therefore deleted.
Paying an assignment:
The payments assigned to third parties are paid on settlement of the set of documents and the amount credited to the payee is reduced.
- For Sight documents, the settlement will be done on the business transaction Send, Accept and Settle (BETPAY) in the Export documents business sector.
- For Usance documents, the calculation is likewise carried out in transaction Send, accept and settle Documents since these amounts are taken over into temporary settlement. However, the final settlement and accounting entry is made in the course of final settlement as part of the transactions Settlement of usance documents on maturity(BETSET).
To process assignments for an existing Export L/C contract, LETAOP transaction is used.
Select it from the menu item[Export Products -> Export L/C -> Other -> Assignment of Proceeds].
(Users can directly start this transaction by clicking the (Launch transaction ) available in the Panel headline without having to select the relevant menu)
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.
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