12. Annexure - B

12.1 Suggested Accounting Entries and Advices for Islam­ic Bills

This Annexure lists the suggested accounting entries and advices that can be set up, for the Islamic Bills and Collections module of Oracle FLEXCUBE. The annexure lists details of the suggested accounting entries and advices, event-wise.

This section contains the following topics

12.1.1 BOOK: Booking

12.1.1.1 Incoming Payment

Operation Stage Clean / Doc Sight/Usance Bill Under LC
PAY INI DOC Sight Only Yes (mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned. LCY Equivalent charge amount in LCY.
Real Customer /Account Receivable Dr Customer/Charges or Fees Receivable. CCY Equivalent amount of charges/fees in the charge/fee currency if it is an Account Receivable else equivalent amount of charges/fees in the Cus­tomer Account Currency.

Advices

Advice Type Advice Description
DISCREPANCY_REQ Discrepancies Request Letter
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice
PAYMENT_ADVICE Payment Advice

12.1.1.2 Incoming Advance

Stage Clean/Doc Sight/Usance Bill Under LC
INI DOC Sight Only Yes (mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee cur­rency if it is a Account Receiv­able else equivalent amount of charges/fees in Customer Account Currency

Advices

Advice type Advice Description
DISCREPANCY_REQ Discrepancies Request Letter
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice
PAYMENT_ADVICE Payment Advice

12.1.1.3 Incoming Acceptance

Stage Clean / Doc Sight/Usance Bill Under LC
INI DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Cus­tomer Account Currency

Advices

Advice type Advice Description
DISCREPANCY_REQ Discrepancies Request Letter
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice
PAYMENT_ADVICE Payment Advice

12.1.1.4 Incoming Discount

Stage Clean/Doc Sight/Usance Bill Under LC
INI DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency

Advices

Advice Type Description
DISCREPANCY_REQ Discrepancies Request Letter
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice
PAYMENT_ADVICE Payment Advice

12.1.1.5 Outgoing Payment

Stage Clean/Doc Sight/Usance Bill Under LC
INI DOC Sight only Yes (Mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is an Account Receivable else equivalent amount in Account Currency

Advices

Advice Type Description
DISCREPANCY_REQ Discrepancies Request Letter
PAYMENT_ADVICE Payment Advice

12.1.1.6 Outgoing Purchase

Stage Clean/Doc Sight/Usance Bill Under LC
INI DOC Sight Only Not Under LC

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer /Account Receivable Dr Customer/Charges or Fees Receiva­ble. CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency.

Advices

Advice type Advice Description
DISCREPANCY_REQ Discrepancies Request Letter
PAYMENT_ADVICE Payment Advice

12.1.1.7 Outgoing Negotiation

Stage Clean/Doc Sight/Usance Bill Under LC
INI DOC Sight Only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency

Advices

Advice type Advice Description
DISCREPANCY_REQ Discrepancies Request Letter
PAYMENT_ADVICE Payment Advice

12.1.1.8 Outgoing Acceptance

Stage Clean/Doc Sight/Usance Bill Under LC
INI DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/ Charges or Fees Receiv­able CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Cur­rency

Advices

Advice type Advice Description
DISCREPANCY_REQ Discrepancies Request Letter
PAYMENT_ADVICE Payment Advice

12.1.1.9 Outgoing Discount (Initial)

Stage Clean / Doc Sight/Usance Bill Under LC
INI DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receiva­ble Dr Customer/Charges or Fees Receiv­able CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency

Advices:

Advice type Description
DISCREPANCY_REQ Discrepancies Request Letter
PAYMENT_ADVICE Payment Advice

12.1.1.10 Outgoing Discount (Final)

Stage Clean/Doc Sight/Usance Bill under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/ Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is an Account Receivable else Equivalent amount of charges/fees in Account Currency
Real Customer Cr Customer Settle­ment Account CCY Equivalent of the Bill amount in the Customer Account currency.
Real / Asset GL Dr Bills Discounted CCY Bill amount in the con­tract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Dis­counted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Debit Account currency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.2 INIT: Initiation

12.1.2.1 Incoming/Outgoing Collections

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description
Real Income Cr Charges/Fees earned
Real Customer/Account Receiv­able Dr Customer/Charges or Fees Receiv­able

AdvicesIncoming Advance

Advice type Description
PAYMENT_ADVICE Payment Advice
ACKNOWLEDGEMENT Acknowledgment Advice
DOC_ARVL_NOTICE Document Arrival Advice
ACKNOWLEDGEMENT Acknowledgment Advice
REMITTANCE_LTR Remittance Letter
Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only Yes (mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/Account Receiv­able Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee cur­rency if it is a Account Receivable else Equivalent amount of charges/fees in Customer Account Currency
Real GL Dr Advance under LCs CCY Bill amount being advanced under the LC in the contract currency.
Real Nostro / Vostro Cr Nostro / Vostro Account of Settle­ment CCY Equivalent amount of the Bill amount being advanced in the Nostro / Vostro Account Currency.
Con­tin­gent Liabil­ity GL Dr LCs OCU Account CCY LC OCU decrement entry in the contract currency.
Con­tin­gent Offset GL Cr GL Contingent Offset Account CCY LC OCU decrement offset entry in the contract currency.
Real GL / Customer Cr Cash Collateral Account for Bills paid as Advance under LCs CCY User input Cash Col­lateral Amount in the Cash Collateral Cur­rency.
Real Customer Dr Cash Collateral payment Account CCY Equivalent User input Cash Collateral Amount in the Cash Collateral Currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice
RESERVE_RELEASE Release of Reserve Advice
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice
PAYMENT_ADVICE Payment Advice

12.1.2.2 Incoming Acceptance (Documentary)

Stage Clean / Doc Sight/Usance Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer /Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else Equivalent amount of charges/fees in Customer Account Currency
Real / Con­tin­gent GL Dr CLFA Account CCY Bill amount in the contract currency.
Real / Con­tin­gent GL Cr CLFA Offset Account CCY Bill amount in the contract currency.
Real GL / Cus­tomer Cr Cash Collateral Account for Bills accepted under LCs CCY User input Cash Collateral Amount in the Cash Col­lateral Currency.
Real Customer Dr Cash Collateral payment Account CCY Equivalent User input Cash Collateral Amount in the Cash Collateral Cur­rency.

Advices

Advice type Advice Description
RESERVE_RELEASE Release of Reserve Advice
DOC_ARVL_NOTICE Document Arrival Notice
PAYMENT_ADVICE Payment Advice
ACKNOWLEDGEMENT Acknowledgment Advice

12.1.2.3 Incoming Discount (Documentary)

Stage Clean/Doc Sight/Usance Bill under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receiva­ble Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Nostro / Vostro Cr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nos­tro / Vostro Account cur­rency.
Real / Asset GL Dr Bills Discounted CCY Bill amount in the con­tract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Dis­counted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Cus­tomer account currency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice
RESERVE_RELEASE Release of Reserve Advice
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice

12.1.2.4 Incoming Discount (Clean)

Stage Clean/Doc Sight/Usance Bill under LC
FIN CLE Usance only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Nostro
/Vostro		 Cr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real / Asset GL Dr Bills Discounted CCY Bill amount in the contract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Dis­counted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Cus­tomer account currency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice
DOC_ARVL_NOTICE Document Arrival Notice
ACKNOWLEDGEMENT Acknowledgment Advice

12.1.2.5 Outgoing Payment

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only Yes (Mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer / Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Nostro / Vostro Dr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being paid in the Cus­tomer Account Currency.
Con­tin­gent Lia­bility GL Dr Customer OCU Account CCY LC OCU decrement entry in the contract currency. This entry will be passed only if the Bill is under an LC confirmed by the Bank.
Con­tin­gent Off­set GL Cr GL Contingent Offset Account CCY LC OCU decrement offset entry in the contract cur­rency. This entry will be passed only if the Bill is under an LC confirmed by the Bank.

Advices

Advice type Advice Description
RESERVE_RELEASE Release of Reserve Advice
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

12.1.2.6 Outgoing Purchase (Documentary)

Stage Clean/Doc Sight/Usance Under LC
FIN DOC Sight only No

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/ Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real GL Asset Dr Outgoing Bills pur­chased CCY Bill Amount in Contract currency.
Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Currency.
Real GL Liability Cr Profit collected in advance on Out­going Bills Pur­chased CCY Equivalent Profit amount for the BC contracts in LCY.
Real Customer Dr Customer Account CCY Equivalent Profit amount in the Customer Account Currency.

Advices

Advice type Advice Description
RESERVE_RELEASE Release of Reserve Advice
REMITTANCE_LTR Remittance Letter

12.1.2.7 Outgoing Purchase (Clean)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN CLE Sight only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is an Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real GL Asset Dr Outgoing Bills purchased CCY Bill Amount in Contract cur­rency.
Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Currency.
Real GL Liability Cr Profit collected in advance on Out­going Bills Pur­chased CCY Equivalent Profit amount for the BC contracts in LCY.
Real Customer Dr Customer Account CCY Equivalent Profit amount in the Customer Account Cur­rency.

Advices

Advice type Advice Description
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

12.1.2.8 Outgoing Negotiation (Documentary)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN DOC Sight only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiv­able CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Dr Customer’s Outgoing Bills Negotiated CCY Bill amount in the contract currency.
Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being negotiated in the Customer Account Cur­rency.
Real / Liability GL Cr Profit Col­lected in Advance on Outgoing Bills Negotiated CCY Equivalent amount of the Profit collected in advance in the accrual currency.
Real Customer Dr Customer Profit Pay­ment Account CCY Equivalent amount of Profit collected in advance in the Customer Account currency.

Advices

Advice type Advice Description
RESERVE_RELEASE Release of Reserve Advice
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

12.1.2.9 Outgoing Negotiation (Clean)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN CLE Sight only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:Advices

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/ Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receiv­able else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Dr Outgoing Bills Nego­tiated CCY Bill amount in the con­tract currency.
Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being negotiated in the Cus­tomer Account Cur­rency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Outgo­ing Bills Negotiated CCY Equivalent amount of the Profit collected in advance in the accrual currency.
Real Customer Dr Customer Profit Pay­ment Account CCY Equivalent amount of Profit collected in advance in the Account currency.
Advice type Advice Description
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

12.1.2.10 Outgoing Acceptance (Documentary)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Cus­tomer /Account Receiva­ble Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receiv­able else equivalent amount of charges/fees in Customer Account Currency
Real / Contin­gent Asset GL Dr Bills CLFA Account CCY Bill amount in the con­tract currency.
Real / Contin­gent Off­set GL Cr CLFA Offset Account CCY Bill amount in the con­tract currency.
Contin­gent Lia­bility GL Dr LCs OCU Account CCY If the Bill is under an LC and if the export LC has been con­firmed by the Bank, then the LC OCU entries will be reversed to the extent of Bill availment.
Contin­gent Off­set GL Cr Contingent Off­set Account CCY If the Bill is under an LC and if the export LC has been con­firmed by the Bank, then the LC OCU entries will be reversed to the extent of Bill availment.
Real & Asset GL Dr Bills Accept­ances Cash Col­lateral Account CCY If a Cash Collateral Amount has been entered during the contract input, then the Cash Collateral entries will be passed.
Real Customer Cr Customer Cash Collateral pay­ment account. CCY If a Cash Collateral Amount has been entered during the contract input, then the Cash Collateral entries will be passed.

Advices

Advice type Advice Description
RESERVE_RELEASE Release of Reserve Advice
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

12.1.2.11 Outgoing Acceptance (Clean)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN CLE Usance only Not applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivae amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receiv­able else equivalent amount of charges/fees in Customer Account Currency
Real / Con­tin­gent Asset GL Dr Bills CLFA Account CCY Bill amount in the con­tract currency.
Real / Con­tin­gent Offset GL Cr CLFA Offset Account CCY Bill amount in the con­tract currency.
Real & Asset GL Cr Bills Acceptances Cash Collateral Account CCY If a Cash Collateral Amount has been entered during the contract input, then the Cash Collateral entries will be passed.
Real Customer Dr Customer Cash Collateral pay­ment account. CCY If a Cash Collateral Amount has been entered during the contract input, then the Cash Collateral entries will be passed.

Advices

Advice type Advice Description
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

12.1.2.12 Outgoing Discount

Stage Clean / Doc Sight/Usance Bill under LC
FIN DOC Usance only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Cus­tomer Account Cur­rency
Real Customer Cr Customer Settle­ment Account CCY Bill amount in the Cus­tomer Account cur­rency.
Real / Asset GL Dr Bills Discounted CCY Bill amount in the con­tract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Dis­counted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Customer account cur­rency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3 LIQD: Contract Liquidation

12.1.3.1 Incoming Collection

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Sight/Usance Not applicable
FIN DOC Sight/Usance Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/ Account Receiva­ble Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Nostro / Vostro Cr Nostro / Vostro Account of Set­tlement CCY Equivalent amount of principal being liquidated in the cur­rency of the Nostro / Vostro Account.
Real Customer/ Account Receiva­ble Dr Customer/Account Receivable CCY Equivalent amount of principal being liquidated in the con­tract currency if it is a Account Receivable else equivalent amount of principal being liq­uidated in the Customer Account Currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.2 Incoming Payment (Final)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only Yes (mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receiva­ble Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Nostro / Vostro Cr Nostro / Vostro Account of Set­tlement CCY Equivalent amount of Bill amount being paid in the currency of the Nostro / Vostro Account.
Real Customer Dr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Cur­rency.

If contingent entries were defined for the event

GL Type A/C Type Dr/Cr Account Description CCY Amount
Contingent Liability GL Dr LC OCU Account CCY LC OCU decrement entry in the contract currency.
Contingent Offset GL Cr Contingent Offset Account CCY LC OCU decrement offset entry in the contract currency.

Advices:

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.3 Incoming Advance

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only Yes (mandatory)

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real GL Cr Advance under LCs CCY Bill amount that was advanced under the LC in the contract currency.
Real Customer Dr Customer Pay­ment Account CCY Equivalent amount of the Bill amount being that was advanced, in the Customer Account Currency.
Real GL Cr Profit Earned Not Collected CCY Profit for Bill in the Accrual Currency of the BC contract.
Real Customer Dr Customer Profit Payment Account CCY Equivalent amount of Profit in the Customer Account Currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Debit Advice

12.1.3.4 Incoming Acceptance (Documentary)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/ Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Con­tin­gent GL Cr CLFA Account CCY Bill amount in the contract currency.
Real / Con­tin­gent GL Dr CLFA Offset Account CCY Bill amount in the contract currency.
Real Nostro / Vostro Cr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real Customer Dr Customer Pay­ment Account CCY Equivalent Bill amount in the Customer account cur­rency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.5 Incoming Acceptance (Clean)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Usance only Not applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/ Account Receiva­ble Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is an Account Receivable else equivalent amount of charges/fees in Customer Account Currency.
Real / Con­tin­gent GL Cr CLFA Account CCY Bill amount in the contract currency.
Real / Con­tin­gent GL Dr CLFA Offset Account CCY Bill amount in the contract currency.
Real Nostro / Vostro Cr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real Customer Dr Customer Pay­ment Account CCY Equivalent Bill amount in the Customer account currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.6 Incoming Discount (Documentary)

Stage Clean / Doc Sight/Usance Under Our LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Cr Bills Discounted CCY Bill amount in the contract currency.
Real Customer Dr Customer Pay­ment Account CCY Equivalent Bill amount in the Customer account currency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.7 Incoming Discount (Clean)

Stage Clean/Doc Sight/Usance Under Our LC
FIN CLE Usance only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Cr Bills Dis­counted CCY Bill amount in the contract currency.
Real Customer Dr Customer Pay­ment Account CCY Equivalent Bill amount in the Customer account cur­rency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.8 Outgoing Collection (Final)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Sight/Usance Not applicable
FIN DOC Sight/Usance Optional

Accounting Entries:

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Nostro / Vostro Dr Nostro / Vostro Account of Set­tlement CCY Equivalent amount of princi­pal being liquidated in the currency of the Nostro/Vostro Account.
Real Customer / Account Payable Cr Customer/Account Payable CCY Equivalent amount of princi­pal being liquidated in the contract currency if it is Account Payable else equivalent amount of princi­pal being liquidated in the Debit Account Currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.9 Outgoing Payment

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only Yes (Mandatory)

Accounting Entries (If contingent entries are defined for the event)

GL Type A/C Type Dr/Cr Account Description Amount
Contingent Asset GL Cr Outgoing Bills under LCs paid Bill amount in the con­tract currency.
Contingent Offset GL Dr Outgoing Bills under LC’S paid Offset Account Bill amount in the con­tract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.10 Outgoing Purchase (Documentary)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only No

Accounting Entries

GL Type A/C Type Dr/Cr Account Description Amount
Real GL Asset Cr Outgoing Bills pur­chased Bill Amount in Contract currency.
Real Nostro / Vostro Dr Nostro / Vostro Account of Settle­ment Equivalent amount of the Bill amount being paid in the Nostro / Vostro Settlement Account Cur­rency.

Advices

None

12.1.3.11 Outgoing Purchase (Clean)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN CLE Sight only Not Applicable

Accounting Entries

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real GL Asset Cr Outgoing Bills pur­chased CCY Bill Amount in Contract cur­rency.
Real Nostro / Vostro Dr Nostro / Vostro Account of Settle­ment CCY Equivalent amount of the Bill amount being paid in the Nos­tro / Vostro Settlement Account Currency.

Advices

None

12.1.3.12 Outgoing Negotiation (Documentary)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN DOC Sight only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Cr Outgoing Bills Negotiated CCY Bill amount in the contract currency.
Real Nostro / Vostro Dr Nostro / Vostro Settlement Account CCY Equivalent amount of the Bill amount in the Nostro / Vostro Account Currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.13 Outgoing Negotiation (Clean)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Sight only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Cr Outgoing Bills Negotiated CCY Bill amount in the contract currency.
Real Nostro /Vostro Dr Nostro/Vostro Settlement Account CCY Equivalent amount of the Bill amount in the Nostro/Vostro Account Currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.14 Outgoing Acceptance (Documentary)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receiva­ble else equivalent amount of charges/fees in Customer Account Currency
Real / Con­tingent GL Cr CLFA Account CCY Bill amount in the con­tract currency.
Real / Con­tingent GL Dr CLFA Offset Account CCY Bill amount in the con­tract currency.
Real Nostro / Vostro Dr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real Customer Cr Customer Set­tlement Account CCY Equivalent Bill amount in the Customer Settle­ment currency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.15 Outgoing Acceptance (Clean)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN CLE Usance only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/ Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Con­tingent GL Cr CLFA Account CCY Bill amount in the contract currency.
Real / Con­tingent GL Dr CLFA Offset Account CCY Bill amount in the contract currency.
Real Nostro / Vostro Dr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real Customer Cr Customer Set­tlement Account CCY Equivalent Bill amount in the Customer Settlement account currency

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.16 Outgoing Discount (Documentary)

Stage Clean / Doc Sight/Usance Under Our LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Cr Bills Dis­counted CCY Bill amount in the contract currency.
Real Nostro / Vostro Dr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.17 Outgoing Discount (Clean)

Stage Clean / Doc Sight/Usance Under Our LC
FIN CLE Usance only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real / Asset GL Cr Bills Discounted CCY Bill amount in the contract currency.
Real Nostro / Vostro Dr Nostro / Vostro Settlement Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.

Advices:

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.3.18 Collateral Accounting on Bill Liquidation

The following amount tags are provided for collateral liquidation as a part of Bill liquidation:

Amount Tag Description
COLL_LIQ_AMT Collateral Liquidation Amount
COLL_LIQ_AMT_EQ Collateral Liquidation Amount

The related Accounting Roles are as follows:

Dr/Cr Accounting role Amount tag
Dr BILL COLLATERAL COLL_LIQ_AMT
Cr Nostro Account COLL_LIQ_AMTEQ

12.1.4 CLOS: Contract Closure

12.1.4.1 Incoming Payment

Stage Clean / Doc Sight/Usance Bill Under LC
INI DOC Sight Only Yes (mandatory)

Accounting Entries

None

Advices

None

12.1.4.2 Incoming Acceptance (Initial)

Stage Clean / Doc Sight/Usance Bill Under LC
INI DOC Usance only Optional

Accounting Entries

None

Advices

None

12.1.4.3 Incoming Acceptance (Final)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real / Contin­gent GL Cr CLFA Account CCY Bill amount in the con­tract currency.
Real / Contin­gent GL Dr CLFA Offset Account CCY Bill amount in the con­tract currency.

Advices

None

12.1.4.4 Incoming Acceptance

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Usance only Not Applicable

Accounting Entries

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real / Contin­gent GL Cr CLFA Account CCY Bill amount in the con­tract currency.
Real / Contin­gent GL Dr CLFA Offset Account CCY Bill amount in the con­tract currency.

Advices

None

12.1.4.5 Outgoing Acceptance (Documentary)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receiva­ble else equivalent amount of charges/fees in Customer Account Currency
Real/Cont. Asset GL Cr Bills CLFA Account CCY Bill amount in the con­tract currency.
Real/Cont. Offset GL Dr CLFA Offset Account CCY Bill amount in the con­tract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.4.6 Outgoing Acceptance (Clean)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receiva­ble Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Account Currency
Real / Con­tin­gent Asset GL Cr Bills CLFA Account CCY Bill amount in the contract currency.
Real / Con­tin­gent Offset GL Dr CLFA Offset Account CCY Bill amount in the contract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.5 REGN: Contract Registration

12.1.5.1 Incoming / Outgoing Collection

Stage Clean/Doc Sight/Usance Bill Under LC
REG (Incoming) CLE Sight/Usance Not applicable
REG (Incoming) DOC Sight/Usance Optional
REG (Outgoing) CLE Sight/Usance Not applicable
REG (Outgoing) DOC Sight/Usance Optional

Accounting Entries

None

Advices

None

12.1.6 BDIS: Discounting

12.1.6.1 Incoming Acceptance to Discount (Documentary)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer/Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Cus­tomer Account Cur­rency
Real Customer Cr Customer Account CCY Equivalent Bill amount in the cur­rency of the Nostro / Vostro Account cur­rency.
Real / Asset GL Dr Bill Accept­ances Dis­counted CCY Bill amount in the contract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Discounted Bills. CCY Discounted Profit amount in the con­tract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Dis­counted Profit amount in the Cus­tomer account cur­rency
Real / Con­tingent GL Cr CLFA Account CCY Bill amount in the contract currency.
Real/ Con­tingent GL Dr CLFA Offset Account CCY Bill amount in the contract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.6.2 Incoming Acceptance to Discount (Clean)

Stage Clean/Doc Sight/Usance Bill Under LC
FIN CLE Usance only Not Applicable

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receiva­ble CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Customer Account Currency
Real Customer Cr Customer Account CCY Equivalent Bill amount in the currency of the Nostro / Vostro Account currency.
Real / Asset GL Dr Bill Accept­ances Dis­counted CCY Bill amount in the contract currency.
Real / Lia­bility GL Cr Profit Collected in Advance on Discounted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Cus­tomer account currency
Real / Con­tin­gent GL Cr CLFA Account CCY Bill amount in the contract currency.
Real / Con­tin­gent GL Dr CLFA Offset Account CCY Bill amount in the contract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.6.3 Outgoing Acceptance to Discount (Documentary)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Customer / Account Receivable Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receivable else equivalent amount of charges/fees in Cus­tomer Account Currency
Real Customer Cr Customer Settle­ment Account CCY Bill amount in the con­tract currency.
Real / Asset GL Dr Bill Acceptances Discounted CCY Bill amount in the con­tract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Dis­counted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Cus­tomer account currency
Real / Con­tin­gent GL Cr Bills CLFA Account CCY Bill amount in the con­tract currency.
Real / Con­tin­gent GL Dr CLFA Offset Account CCY Bill amount in the con­tract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.6.4 Outgoing Acceptance to Discount (Clean)

Stage Clean / Doc Sight/Usance Bill Under LC
FIN CLE Usance only Optional

Accounting Entries

If any charges/fees are applicable, then the following accounting entries will be passed for each of the charges/fees:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges/Fees earned LCY Equivalent charge amount in LCY
Real Cus­tomer/ Account Receiva­ble Dr Customer/Charges or Fees Receivable CCY Equivalent amount of charges/fees in the charge/fee currency if it is a Account Receiv­able else equivalent amount of charges/fees in Customer Account Currency
Real Customer Cr Customer Account CCY Equivalent Bill amount in the Customer Account currency.
Real / Asset GL Dr Bill Acceptances Discounted CCY Bill amount in the con­tract currency.
Real / Liabil­ity GL Cr Profit Collected in Advance on Discounted Bills. CCY Discounted Profit amount in the contract currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent Discounted Profit amount in the Customer account cur­rency
Real / Con­tingent GL Cr CLFA Account CCY Bill amount in the con­tract currency.
Real/Con­tingent GL Dr CLFA Offset Account CCY Bill amount in the con­tract currency.

Advices

Advice type Advice Description
PAYMENT_ADVICE Payment Advice

12.1.7 BACP: Bill Acceptance

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * Usance only *

* All types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
OUT ACCEPTANCE_ADV Advice of Acceptance
INC ACCEPTANCE_ADV Advice of Acceptance

12.1.8 REVR: Reversal

12.1.9 All Bill Products

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * * *

All types of BC Products

Accounting Entries

All the Accounting Entries that were passed during the life cycle of the BC Contract will be reversed out.

Advices

None

12.1.10 ACCR: Profit Accrual

12.1.10.1 All Bill Products

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * * *

* All types of BC Products for which profit is applicable

Profit Accruals will be done during initiation of a BC Contract as well as by the EOC Automatic Profit Accrual Function. During Contract initiation, if profit is applicable for the product and if the profit start date is less than the today’s system date, then profit accruals till yesterday will be done. The normal profit accruals will be done by the EOC automatic profit accrual function.

Accounting Entries

If the Profit on the Bill is collected in arrears, then the following profit accrual entries will be passed:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real GL - Income Cr Profit earned LCY Equivalent profit accrual amount in LCY
Real GL Asset/IENC Dr/Cr Profit Earned Not Collected CCY Equivalent profit accrual amount in the accrual currency

If the Profit on the Bill is collected in advance, then the following profit accrual entries will be passed:

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real GL Cr Profit earned LCY Equivalent profit accrual amount in LCY.
Real GL Liability/UI Dr Unearned Profit / Profit collected in advance CCY Equivalent Bill amount in the accrual currency.

Advices

None

12.1.11 REAS: Reassignment

12.1.11.1 All BC Products

Bill Type Operation Stage Clean/Doc Sight/Usance Under Our LC
* * * * * *

* All types of BC products

Accounting Entries

None

Advices

None

12.1.12 ADIS: Approval of Discrepancies

12.1.12.1 All Bill Products

Bill Type Operation Stage Clean/Doc Sight/Usance Under Our LC
* * * * * *

* All types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
OUT RESERVE_RELEASE Advice of Discharge
INC RESERVE_RELEASE Advice of Discharge

12.1.13 REFA: Refusal to Accept

12.1.13.1 All Bill Products

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * Usance only *

* Al types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
OUT ACCEPT_REFUSAL Advice of Refusal
INC ACCEPT_REFUSAL Advice of Refusal

12.1.14 REFP: Refusal to Pay

12.1.14.1 All Bill Products

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * * *

* All types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
OUT PAYMENT_REFUSAL Advice of Refusal
INC PAYMENT_REFUSAL Advice of Refusal

12.1.15 TAFT: Advice of Fate

12.1.15.1 All Bill Products

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * * *

* Al types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description Recipient
OUT PRINCIPAL_FATE Advice of Fate and Request for Instructions Drawer
INC PRINCIPAL_FATE Advice of Fate and Request for Instructions Remitting / Collecting Bank

12.1.16 TACP: Tracer for Acceptance

12.1.16.1 All Bill Products

Bill Type Operation Stage Clean/Doc Sight/Usance Under Our LC
* * * * Usance only *

* All types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
INC ACCEPTANCE_TRCR Tracer for Acceptance
OUT ACCEPTANCE_TRCR Tracer for Acceptance

12.1.17 TAPY: Transfer for Payment

12.1.17.1 All Bill Products

Bill Type Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * * *

* All type of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
INC PAYMENT_TRCR Tracer for Payment
OUT PAYMENT_TRCR Tracer for Payment

12.1.18 TDIS: Tracer for approval of discrepancies

12.1.18.1 All Bill Products

Operation Stage Clean/Doc Sight/Usance Under Our LC
* * * * *

* Al types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
INC DISCAPPRVL_TRCR Tracer for Approval of Discrepancies

12.1.19 TRES: Tracer for release of reserve

12.1.20 All Bill Products

Operation Stage Clean / Doc Sight/Usance Under Our LC
* * * * *

* All types of BC Products applicable

Accounting Entries

None

Advices

Bill Type Advice type Advice Description
OUT REL_OF_RES_TRCR Tracer for Release of Reserve

12.1.21 DNTC - Arrival of Document Notice

12.1.22 All Bill Products

Operation Stage Clean / Doc Sight/Usance Under LC
* * * * *

* All types of BC Products applicable

Accounting Entries

None

Advices

Advice type Advice Description
DOC_ARVL_NOTICE Document Arrival Notice

12.1.23 ROLL: Rollover

Accounting Entries

Event Accounting Role Amount Tag Dr./Cr. Indicator
ROLL ROLL_BRIDGE_GL PRINCIPAL_ROLL Debit
ROLL ADV UNDER LCS PRINCIPAL_ROLL Credit
INIT ADV UNDER LCS PRINCIPAL_ROIN Debit
INIT ROLL_BRIDGE_GL PRINCIPAL_ROIN Credit
INIT LC_BC_COLL_BRIDGE CASH_COLL_AMT Debit
INIT BILL COLLATERAL CASH_COLL_AMTEQ Credit

Amount Tags

Amount Tag Description
PRINCIPAL_ROLL Rollover Amount
PRINCIPAL_ROIN Principal Amount

12.1.24 Accounting Roles for transfer of Charge & Commission components from LC to BC

Here, LC_COMM component and LC_CHG component are defined in the LC product where the Collect LC Commission in Bills option is checked.

Sl No Accounting Role Description
1. LC_CHG_COMP_RECV LC Charges Receivable
2. LC_COMM_COMPRECV LC Commission Receivable.
3. BC_LC__CHG_COMP_RECV BC Charges Receivable from LC
4. BC_LC_COMM_COMPRECV BC Commission Receivable from BC

12.1.24.1 Accounting Definition for Charges / Commission as a part of Bills

The following accounting roles are maintained in the INIT, LIQD and AMND events of Bills.

Accounting Roles

Accounting role Description
LC_CHG_COMP_RECV LC Charges Receivable
LC_COMM_COMPRECV LC Commission Receivable
BC_LC_CHG__COMP_RECV Bills Charges Receivable
BC_LC_COMM_COMPRECV Bills Commission Receivable

The LC_CHG_COMP_RECV and LC_COMM_COMPRECV roles defined as a part of the Bills product are mapped onto the GL’s same as the ones mapped in the LC product. This is operationally controlled and the system does not ensure the same.

The BC_LC_CHG_COMP_RECV and BC_LC_COMM_COMPRECV roles defined as a part of the Bills product are mapped to the BILLS receivable GL .This is used to transfer the amount from LC receivable GL to BILLS receivable GL.

Amount Tags

The amount tags for the receivable charge and receivable commission propagated from LC to Bills are as follows:

Amount Tag Description
LC_CHG_TFR LC Charge being transferred.
LC_COMM_TFR LC Commission being transferred.
LC_CHG_TFR_LIQD LC transferred Charge being liquidated.
LC_COMM_TFR_LIQD LC transferred Commission being liqui­dated

Accounting Entries

The accounting entries as a part of the Bill initiation/Liquidation/Amendment with regards to the commission an charges transferred from the LC are as follows:

Dr/Cr Accounting role Amount tag propagated from LC
Dr BC_LC_COMM_COM­PRECV LC_COMM_TFR
Cr LC_COMM_COMPRECV LC_COMM_TFR
Dr BC_LC_CHG_COMP_RECV LC_CHG_TFR
Cr LC_CHG_COMP_RECV LC_CHG_TFR

These accounting entries may not be maintained as part of either of the events where the system does not pass any accounting with regards to transfer of charge onto Bills.

12.1.25 Collateral Bridge Accounting Role

Accounting role Description
LC_BC_COL­L_BRIDGE Collateral bridge between LC and Bills

This accounting role is used to transfer the collaterals from the LC onto the Bill. This role maps onto the GL/Account maintained as a part of the LC product preference.Bill Crystallization Accounting Roles and Amount Tags

The event to indicate crystallization of the bill is CRST.

The following are the Accounting Roles and Amount tags available to define the accounting entries for the crystallization event of the bills.

Amount Tag Description
BC_CRST_TFR_AMT Bill Amount to be crystallized
BC_CRST_LIQ_AMT Total Bill Amount to be liquidated
BC_CRST_COLL_LIQ_AMT Bill Amount to be liquidated against Collateral
LC COMM COMP _TFR_LIQD Commission Amount to be liquidated
LC CHARGE COMP _TFR_LIQD Charge Amount to be liquidated
LC COMM COMP _TFR Commission Amount to be transferred onto Finance
LC CHARGE COMP _TFR Charge Amount to be transferred onto Finance

Accounting Role Description
BC SUSPENSE BC LD Bridge GL
BC_COMM_RECV Bills Commission Receivable
BC_CHG_RECV Bills Charge Receivable

The amount tag – BC_CRST_TFR_AMT contains the amount input in crystallization preference of the bills contract. BC_CRST_COLL_LIQ_AMT contains the collateral amount to be liquidated as captured in the bills crystallization preference.

BC_CRST_CHG_LIQ_AMT and BC_CRST_COMM_LIQ_AMT contains the charge and commission amounts respectively if the option – “Liquidate charge / commission from LC “is selected in the crystallization preference, else, the amount tags - BC_CRST_CHG_TFR_AMT and BC_CRST_COMM_TFR_AMT contain the amounts.

The amount tags - BC_CRST_LIQ_AMT contain the Total Bill Outstanding amount minus Bill Amount to be crystallized minus Collateral amount to be liquidated.

The following Accounting entries are setup as a part of the crystallization event:

Event Accounting Role Dr/Cr Amount Tag
CRST Customer Account Dr BC_CRST_LIQ_AMT
CRST Nostro Account Cr BC_CRST_LIQ_AMT_EQ
CRST BC SUSPENSE Dr BC_CRST_TFR_AMT
CRST Nostro Account Cr BC_CRST_TFR_AMT_EQ
CRST BC SUSPENSE Dr LC COMM COMP _ TFR
CRST BC_COMM_RECV Cr LC COMM COMP _ TFR
CRST BC SUSPENSE Dr LC CHARGE COMP _ TFR
CRST BC_CHG_RECV Cr LC CHARGE COMP _ TFR
CRST Customer Account Dr LC COMM COMP _ TFR_LIQD
CRST LC COMM COMP _RECV Cr LC COMM COMP _ TFR_LIQD
CRST Customer Account Dr LC CHARGE COMP _ TFR_LIQD
CRST LC CHARGE COMP_RECV Cr LC CHARGE COMP _ TFR_LIQD
CRST BCCOL_DEP_GL Dr BC_CRST_COLL_LIQ_AMT
CRST Customer Account Cr BC_CRST_COLL_LIQ_AMT
CRST Customer Account Dr BC_CRST_COLL_LIQ_AMT
CRST Nostro Account Cr BC_CRST_COLL_LIQ_AMT

The BC Suspense accounting role mentioned here is the bridge GL used between the Bill and finance and contains the suspense account maintained as a part of the Bill crystallization product preference.

If the set of accounting entries in INIT event of Bills discussed above are not defined, then, the you have to map the Bills Commission receivable and Bills Charge receivable accounting roles to the same head as that of the LC Commission receivable and LC Charge receivable roles’ heads. This is operationally controlled and the system does not perform any validations to ensure the same.

12.1.26 Crystallization Linkage Event

The BLNK event is triggered in the bill upon booking of a linked finance for the bill. No advice or accounting entries shall be allowed for the event. This event is basically used to keep an audit trail of when the linkage of the finance occurred to the bill.

12.1.27 Events for Reversal of Linked Finance before and after initiation of the finance

Reversal of linked finance before initiation of the finance

The RLNK event is triggered in the bill on the reversal of a linked finance before initiation of the finance is allowed. This event does not have any accounting or messaging and such bills are again available for linking.

Reversal of linked finance after initiation of the finance

Upon initiation of the finance, the bill gets liquidated, and the finance behaves as a normal finance in Oracle FLEXCUBE which can be reversed. Such an event does not perform any subsequent action on the Bill linked.

Bill Reversal upon linkage of finance with finance to be initiated

Bill reversal is not allowed if there is a finance linked to the bill that has not been reversed. The reversal of the bill is allowed once the underlying linked finance has been reversed.