The Transferable Letters of credits often do not work out as planned, and this is usually because the documents provided in support of a claim under the Transferable letter of credit do not meet the conditions (and so become a 'Discrepant Documents under Transfer L/C').
When the documents presented do not match what is specified in the terms and condition of the credit then the documents become Discrepant.
The Transferring bank have every rights to reject the presented documents due to discrepancies. The relevant party to be notified with the rejection of documents. The documents will be handled as per the disposal instructions.
In case the rejection depends on instructions, the 'Rejection Pending Instructions' checkbox has to be checked. This does not automatically close the contract (checkbox 'Close Contract' will be unchecked).
The discrepancies can be changed in field 'Discrepancies' after the checkbox “Discrepancies modified” has been checked. The contract is closed if the 'Rejection Pending Instructions' is not checked.
When only an advice of discrepancies is to be sent, the 'Send Advice of Discrepancies' checkbox is to be checked. In case if the Documents are to be returned to the presenting bank on 1st beneficiary side or/and documents to presenting bank on 2nd beneficiary side, the checkboxes 'Return of Doc. to Presenting Bank (1st Ben.)' or/and 'Return of Doc. to Presenting Bank (2nd Ben.)' are to be checked.
To reject the discrepant documents in a transfer L/C that have not been taken up, BTTDCR transaction is used.
Select it from the menu item[Export Products ->Transfer L/C -> Transfer Documents -> Process Discrepant 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.