The collecting bank act as the remitting bank's agent and clearly follows the instructions on the remitting bank's covering schedule and delivers the documents to the importer.
There is a chance that the drawee refuses to pay or cannot be found or reached under Inward collections at the time of releasing documents by the Collecting Bank.
The collecting bank needs then to send a rejection message and return the documents to the remitting bank indicating the reason why they were rejected.
When the drawee does not agree with the terms of the collection, an initial rejection message may be sent, giving the drawer and drawee time to negotiate a solution. This is called 'Pending Non-Payment'. As long as the contract has not been rejected, this option can be run as often as required. The contract is then neither rejected nor closed.
With a documentary collection that is rejected outright by the drawee, the collecting bank may initially hold on to the documents hoping that the drawer will instruct them to present the documents to another party. We indicate this with 'Outright, hold documents'.
The 'Outright, return documents' option also sends a message of rejection to the parties indicating the reasons for the rejection. In addition, documents submitted under a collection are returned to the presenting party. The contract is then closed.
To reject the documents under an Inward Collection, BCTDOR transaction is used.
Select it from the menu item[Import Products -> Import Collection -> Main -> Reject 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.
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