1. Islamic Bills and Collections User Guide
  2. Suggested Accounting Entries and Advices for Islamic Bills
  3. INIT - Initiation
  4. Incoming Discount (Documentary)

11.2.2.3 Incoming Discount (Documentary)

Table 11-39 Stage

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

Table 11-40 Accounting Entries

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

Table 11-41 Advices

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