On receipt of the remitting bank’s collection instruction and the documents, the collecting bank will examine what has been received, check the schedule of instructions it has been given, and make sure that the documents attached are as described and in the correct number of originals and copies. Collecting
banks are not required to look to the documents for any instructions.

For the collecting bank, the collection will often be referred to as an ‘inward bill for collection’.

The collecting bank, normally a correspondent of the remitting bank based in the buyer’s country − the collecting bank, as agent of the remitting bank, will present the documents to the drawee (usually the
buyer of the goods) for payment or acceptance. It should request the drawee to pay the funds on an account of the bank.

When the collecting bank does not know the drawee and there will be a presenting bank specified, the documents are forwarded to the second collecting bank(Presenting bank) and are not sent to the drawee.

The Presenting bank, this is a bank used by the collecting bank where it has been identified by the collecting bank that the presenting bank is the banker of the drawee and is better placed to approach the drawee with a request for payment or acceptance. It is not common to have a collecting
bank and a presenting bank.

Types of collections:

• Documents against Payment (D/P):  Payment is due immediately at sight.
• Documents against Acceptance (D/A): Drawee is to accept an included draft and payment is due maturity of this draft.
• Documents against Deferred Payment (D/DP): Payment is due at maturity that is after a specified period.
• Documents against Mixed Payment (D/M): A part of the amount is due at sight and the other part is due at maturity.
• Clean Collection: The document(s) presented is a financial document and payment is due at the due date of that document (as such collection is typically sent just before the due date, payment is normally due immediately).

There is also the possibility of releasing the goods in this transaction. If the goods are addressed to the bank using the application, these can be released immediately using this transaction (when the documents have been presented), without first having to open the 'Release of Goods' (BCTROG) transaction. Depending on the 'type of release', either a release of goods or a bill of lading guarantee is send to the forwarder.

When the collection is received from the remitting bank and data is recorded using BCTDAV transaction.

Select it from the menu item[Import Products -> Import Collection -> Main -> Advise Documents].

(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.