When the document sets are received under the Export L/C, further handling is done in the below ways,
- To only send the documents without settling that have been presented and checked.
- To send and settle the received documents at the same time.
In case of Sight documents, when the documents are accepted (Clean documents received) and the settlement is triggered at that point of time. When the document sets are fully paid without any remaining balance the contract is closed and the closing date field is set to the current date.
The Settlement of documents is controlled through checkbox 'Take up Documents now'. When this checkbox is ticked, the Document set status will change to Documents taken up and if it is fully paid the close contract checkbox will also be ticked in the Send Docs. panel.
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.
If the Bank wishes to do Finance for the Sight documents, the 'Create Financing' checkbox on the Funds Settlement panel should also be checked. The financing details can then be entered on the panel with the same name.
In case of Usance documents, when the documents are accepted the actual maturity date is booked in and a temporary settlement is generated at that time.
But this temporary settlement cannot be generated if several usance maturities are booked in. The final Settlement is done using this transaction.
When 'Mixed Payment' documents are presented, the sight proportion of the total amount can be settled directly in this Send, Accept and Settle Documents transaction. The user has to enter the sight proportion in the 'Amount Settled' field.
The difference to the total amount is then entered as an liability due at a later date.
The user then enters the due date and any splitting of the usance amount into several liabilities on the “liability” panel.
Settlement of a sight proportion in a 'mixed payment' document set can either be temporary or final.
When the settlement is final, the liability and settlement bookings for the sight proportion are generated directly in this transaction and any relevant messages are sent to the receiver.
When the settlement is temporary, the internally booked liability or the liability proportion credited for the sight proportion remains unchanged in the transaction. Amounts are only debited on the liability side when the sight proportion is finally settled. The Final settlements are effected using the “Settle Usance Documents at Maturity” transaction.
To Send, Accept and Settle Documents under an Export L/C , BETPAY transaction is used.
Select it from the menu item[Export Products -> Export L/C -> Documents -> Send, Accept and Settle Docs].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.