Transaction Management and MaintenanceTraining Program for Bank Business Users Training Course Manual Eximbills Enterprise Transaction Management and Maintenance Version 1.0 December 2015 Copyright © 2011, 2005, 2004 China Systems Corporation All Rights Reserved This document is provided complementary to the terms and conditions of a Training agreement with China Systems Corporation. This material is under Copyright protection and contains Trade Information proprietary to China Systems Corporation. No portion of this document may be copied, reproduced, distributed, modified, or translated without prior written consent from China Systems Corporation. Information provided may change without preceding notice. China Systems Corporation makes no warranty, either expressed or implied, with respect to the software or service herein described in terms of quality, performance, including, without limitation to, its fitness for any particular purpose. China Systems Corporation accepts neither responsibility nor liability for any damage or loss of business or revenue due to the use of this document. All trademarks and trade names mentioned in this document are the sole property of their respective holders. CHINA SYSTEMS CORPORATION Training Department 3/F Port Royal Place, 118 Rada Street Legaspi Village 1229, Makati City Philippines Email all feedback and communication to:
[email protected] CONTENTS PREFACE 3 About the Manual ....................................................................................................................... 3 About the Course ....................................................................................................................... 3 SECTION 1: THE EE BROWSER 4 Expectations ............................................................................................................................... 4 Lesson 1: Introduction to the EE Browser.................................................................................. 5 Lesson 2: Browsing through the Modules .................................................................................. 9 Lesson 3: Running a Transaction Function .............................................................................11 Lesson 4: Working with Transaction Templates ......................................................................25 Lesson 5: Maintaining Transaction Records ............................................................................28 SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 36 Expectation .............................................................................................................................. 36 Overview ..................................................................................................................................37 Lesson 1: Maintaining Customer Data ..................................................................................... 38 Lesson 2: Maintaining Bank Records ...................................................................................... 44 SECTION 3: IMPORT LETTER OF CREDIT 48 Expectations ............................................................................................................................. 48 Overview ..................................................................................................................................49 Lesson 1: Issuance ..................................................................................................................51 Lesson 2: Amendment .............................................................................................................58 Lesson 3: Presentation ............................................................................................................61 Lesson 4: Settlement ...............................................................................................................66 SECTION 4: EXPORT LETTER OF CREDIT 68 Expectations ............................................................................................................................. 68 Overview ..................................................................................................................................69 Lesson 1: Advice ...................................................................................................................... 71 Lesson 2: Amendment .............................................................................................................73 Lesson 3: Presentation ............................................................................................................75 Lesson 4: Settlement ...............................................................................................................80 SECTION 5: EXPORT COLLECTION 83 Expectation .............................................................................................................................. 83 Overview ..................................................................................................................................84 Lesson 1: Registration .............................................................................................................85 Lesson 2: Amendment .............................................................................................................87 Lesson 3: Payment and Acceptance ....................................................................................... 89 TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH TABLE OF CONTENTS i ....................................................................................................................... 121 Overview .......................................................................................................................................................... 111 Overview .......................................... 105 Lesson 1: Issuance .........................................................................................................................................94 Lesson 2: Amendment .................................................................114 Lesson 2: Amendment ......................................................................................................................................................................................... 104 Overview ..................................................................................117 Lesson 3: Claim ............................................................................................................................................................................................................................................ 98 SECTION 7: SHIPPING GUARANTEE 101 Expectations ..............................................123 TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH TABLE OF CONTENTS ii ................................................ 121 Lesson 1: Set Global Limits ...................122 Lesson 1: Set Sub Limits ............................................................................................................................................................................103 SECTION 8: OUTWARD GUARANTEE 104 Expectations ..............................................................................................................................................SECTION 6: IMPORT COLLECTION 92 Expectation .......................................................................................................................................................................................109 SECTION 9: INWARD GUARANTEE 111 Expectation ................................... 102 Lesson 1: Issuance .............................................................. 112 Lesson 1: Registration ...............................................................96 Lesson 3: Acceptance and Payment ............................................................................................................................................................................ 92 Overview ...............................................................................................93 Lesson 1: Registration .................... 101 Overview ............108 Lesson 3: Claim ....................................................................................................119 SECTION 10: LIMITS MANAGEMENT 121 Expectations ................................................................................................................................................107 Lesson 2: Amendment ....................................................................................................................................................................................................................... At the end of the course. About the Course The Transaction Management and Maintenance Training Course aims to provide the reader a working knowledge on: system access and navigation. and thus can easily navigate and perform the transaction cycles on the modules developed for ENBD Egypt. and maintenance of business transactions using the developed modules for ETFS. record processing and maintenance and transaction flow of developed modules. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH PREFACE 3 .PREFACE About the Manual This training manual is designed to complement the training course in providing knowledge and know-how on the processing. the participant is expected to have a complete comprehension of the EE system. management. and be able to identify the EE browser Users. the learner is expected to: be able to log on the EE System’s user interface. be familiar with the user interface functionalities of the EE browser.SECTION 1: THE EE BROWSER Expectations After reading this section. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 4 . and understand how these users are maintained. and the User ID of the end-user under the related Unit Code and its corresponding password.Lesson 1: Introduction to the EE Browser The EE browser is a web-based application through which the trade products of a bank are made accessible to the end-users for trade processing. Logging on the EE Browser Logging on the EE browser requires a Business Unit Code. The URL used in accessing the EE application is provided by system administrators. These administrators are tasked to install and maintain the application and its users. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 5 . Modules Section: Lists all modules available for business processing. Links Section: Contains links that. the EE Homepage is displayed containing the following sections: User-Information Section: Indicates the details of the user that had logged in. Log Off Click to log out from EE. When a module is clicked.The EE Home Page Once logged in. a list of function groups and transaction functions used in performing a business process are displayed (see B of illustration). including the time and date of the last log-on (see A of illustration). Change Profile Click to modify profile credentials and date format of the logged in user. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 6 . Tabled below are the links of this section and their respective functionalities. when clicked. allow the user to perform certain operations (see C of illustration). Change Quick Launch Click this link to display the Quick Launch window and be able to perform relevant configurations.The Submit and Reset buttons may be used to apply the changes and cancel the defined changes. The Quick Launch allows the user to maintain a list of frequently-used transaction functions on the homepage for easier and quicker access. respectively. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 7 . select the transaction function that is to be added to the Quick Launch by marking on the checkbox located at the left side of the function. To configure the Quick Launch. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 8 .The checkbox on the right side of the function may be marked to display the total count of records that are pending to be processed using the said function. A function group contains one or several transaction functions that accomplish a business process when run. A module represents a trade finance product of a bank.Lesson 2: Browsing through the Modules What is a Module? The different stages of a Transaction Process in a business cycle are provided with specific functions that correspond to the business requirements of each stage. and are subdivided among different groups.g. Export Letters of Credit. A function group is named according to the stage or business process that it performs. or Transaction purposes. A module may be defined for Security. Import Letters of Credit. Guarantees. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 9 .. e. Each module may contain one or several function groups. System. These functions are grouped under a system organizer called Module. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 10 .To browse through the modules: 1. Click on a function group to display its corresponding transaction functions. 2. 3. Click on a transaction function to run it and process the transaction. Click on a module to display the function groups. The Standard Function Buttons Running a transaction function from any module is provided with a standard toolbar. Template. These buttons are enabled or disabled in accordance to the needs or requirements of the transaction function. Transaction. The transaction can later be modified or continued through the Continue Saved function. to display a list of records that are to be further processed. Load. Reset. performs specific operations related to the function being run. Button Name Description Save This button is used to save as draft the current transaction— the record is not submitted to the Release queue. Confirm. SWT-View. Delete. Doc-View. and a transaction screen containing fields for data input. the system displays: a Standard Toolbar containing buttons that. Back. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 11 . Cancel. When the function is run. which consists of the Save. The system checks that all required details are specified before the transaction can be confirmed and made available in the next stage of the transaction cycle. when clicked. a catalog (if applicable). On Confirm This button is used to complete or confirm the transaction.Lesson 3: Running a Transaction Function Running a transaction function means simply clicking on a transaction function. Next. VCH-View. The system stores the transaction without performing any validations. and Rej-Reason buttons. this button may be used to preview the SWIFT message that is to be generated for the transaction. manually specified by the user that rejected the record. Cancel This is used to cancel the action made in a function. Vch-view If an accounting rule is defined for the function. Delete This button is enabled only in the Delete Pending and Delete Master functions. Load This is used to load a previously created template as a basis for creating the transaction. which can later be used as a basis for new transactions. If the record has undergone several rejections. this button is used to view the reason why the record has been rejected. Doc-View If a form rule is attached to the function. this button may be used to preview the voucher that is to be generated for the transaction. this button may be used to preview the document that is to be generated for the transaction. This is used for deleting records. Template This is used to save the current transaction as a template. Swt-View If an outgoing SWIFT message rule is attached to the function. A Close button is provided for closing this SWIFT view window. A Close button is provided for closing this Voucher view window. Rej-Reason If a transaction record has been rejected by a supervisor or an authoriser. Next This is used to proceed to the next step of the function process. A Close button is provided for closing this Document view window. Transaction This is used for viewing the events in the history of the transaction. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 12 . may also be viewed through this button. the history of rejection reasons. Back This button is used to go back to the preceding step of the function process.Reset This is used to clear the field values in the function. the record may be retrieved and amended using the Issue Amendment One Step function. As there can be several records that may be put in queue on a specific event or step.The Catalog Page A transaction flow may involve one or several events. the LC is issued using the Issue LC One Step function (e. The bank user receives the request from the customer and then logs into the system to Issue the Amendment. The fields available on the catalog page may be used to filter the desired record to be retrieved. LC Number: IPLCCSB000391). a catalog page is provided to aid in retrieving the record. a catalog page is displayed. waiting to be processed by a user. this means that: all records from step 1 function may be processed using the step 2 function. all records from step 2 function may be processed using the step 3 function. To filter a record by LC Number. Upon authorization. In this scenario.g. These events or steps in a flow are put in a module as a transaction function. Upon running the function. Say that a record follows a 3-step chronological process. specify the value on a field provided: TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 13 . Business Sample: An authorised Issued Letter of Credit is requested to be amended. the catalog page. which in this case is the amendment of the LC. Click on run the filter. Select the record by marking on the checkbox provided and then click on the Next button to proceed performing the necessary business process. A Transaction List page is displayed. called a wildcard. The icon found on the upper left section of the Transaction List page may be clicked to display. the record is displayed on the list. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 14 . to The % character. This is used to change any specified information before filtering the record(s).Click on the Next button to instruct the system to proceed filtering the record. If the system is able to find a match on the defined LC Number. found on every criteria field is used for pattern matching. in a mini-view. optional fields in white. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 15 . into which business transaction-related information are entered. or optional—case data may or may not be entered into the field. Mandatory fields are in blue.Example: Data: LC Number IPLCCSB000391 EGHIMPLC15242 EGHIMPLC15244 EGHIMPLC15246 EGHIMPLC15249 Query Criteria: LC Number %524% Result: EGHIMPLC15242 EGHIMPLC15244 EGHIMPLC15246 EGHIMPLC15249 Query Criteria: LC Number 524 Result: None Transaction Screen: Field Properties and Options Field Attributes Fields are the rectangular spaces in the CE interface. Some fields are protected— for display only and no input is allowed. Fields may be either mandatory— case data have to be entered into the field. The system does not allow processing if mandatory fields are left blank. The ID may be manually specified in this field. The lookup button typically corresponds to an ID field. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 16 . To display the lookup window. Instead of manually entering data. Click on the lookup button corresponding to the field. Bank table for Bank records). Data entered in any of the associated fields is included in the selection criteria when the lookup button for the ID field is clicked. The system displays a lookup window listing only the records that match the details already specified in the associated fields. then the system automatically populates the associated fields with the corresponding values. listing the records available for the party is displayed. When a lookup button is clicked. the relevant record is simply selected from the list. This button is enabled for use only if the corresponding field is not protected. the system displays a message confirming the continuation of the process. click on the OK button. The values are automatically retrieved into the associated fields only if the specified ID exists in the relevant table (e. In cases when there is a huge number of records to be retrieved into the lookup window.Lookup Button for Party Fields Certain party fields like Beneficiary and Issuing Bank have corresponding lookup buttons. 2. a lookup window.. Inaccurate input of information into fields is thus avoided.g. Example: 1. the system displays the records of the different formats for the name of this party. When provided. the lookup button corresponding to the address field (Mailing Address or Address) is enabled if a value is defined for the ID field. Note Options are provided in the lookup window to filter the records to be listed. the lookup button corresponding to the Name field is enabled if a value is defined for the ID field. Name. A lookup window is displayed listing all the records for the corresponding party type.3. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 17 .. 4. To select a record. This is filtered according to the indicated ID. ID. the system displays the records of the different formats for the address of this party. This is filtered according to the indicated ID. When this button is used. Before changing the current values of the lookup fields. Otherwise. the lookup window only lists the record that corresponds to the current values of the lookup fields. When this button is used. The details of the selected record are then automatically populated into the associated fields (e. Address.g. click on its reference number. the value of the ID field must be deleted first. Mailing Address). When provided. 3.Clause Button for Clause Fields Most of the large text fields. and buttons provided to choose the clause or clauses relevant to the field. Additional information can be manually inserted into the clause field. A Clause button allows the user to select the relevant predefined clauses instead of manually entering the data. Example: 1. such as the Clause fields. lists. are provided with a Clause button. Click on the Clause button corresponding to the Clause field in the transaction screen. Use the fields. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 18 . The Insert Clause window is displayed. 2. The selected clauses are then automatically entered in the transaction field. Currency and Amount Fields In the transaction screen. 2. Select the relevant currency from the Currency field dropdown list. Example: 1. the user can select a particular date using the calendar function instead of manually specifying it. Specify the amount in the Amount field. Example: 1. Date Fields When setting the value of a Date field. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 19 . The formats of these currency codes follow the ISO standard. The value is formatted according to the selected currency. 3. Place the cursor on the Date input field. amount fields such as the LC Currency and Amount field actually point to two different fields or data: Currency Amount The Currency field is usually a dropdown list that contains all the available currency codes. The standard format of a Date field is DD-MM-YYYY. The selected currency is the basis for validating the format and decimal places of the amount that is associated to the currency field. The associated Amount field defaults to the format of the indicated currency. with the current date highlighted. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 20 . Click on the View Notes link that corresponds to a specific Party type. 3. A dropdown calendar is displayed. Select the relevant date. The selected date is then populated in the Date field. Make sure that the Party details are already defined or indicated. There is a View Notes link provided for a set of Party fields in a function.2. Example: 1. View Notes The View Notes is a link that may be accessed to view special information attached to the Party master record. To close the window. The following buttons are enabled or made available depending on the transaction function or the type of transaction that is being processed. which is only one of the different types of information defined for a transaction. Data Objects Certain transaction function screens provide data objects. The details of these payment terms may be put into a data object. For example. A data object is generally a set of records pertaining to a specific type of information. on the other hand. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 21 .2. are defined through the Bank Maintenance module. click on the ‘x’ button. Buttons are provided to facilitate the maintenance of these data object records. a letter of credit that is available by mixed payment may be paid at sight and through deferred payment. A window is displayed showing the supplementary information defined for the party. Notes The notes for a customer are defined through the Customer functions of the Static Data module. The notes for a bank. 2. Delete This button is used for deleting an existing data object record. click on the Save button. Example: 1. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 22 .Button Name Description Add This button is used for creating or adding a new data object record. View This button is used for previewing an existing data object record. on Edit This button is used for modifying an existing data object record. To add a record. A set of buttons is provided for performing data object maintenance operations. click on the Add button. 3. Specify the required information. To save the record. Access the tab under which the data object record can be defined. The data object screen is displayed. Attachment Links Certain transaction functions are provided with links for viewing and uploading attachments of various types. 5. Use the data object buttons provided to perform maintenance operations on the data object. This allows the user to save the current record and proceed with creating a new record. Attachments may be in the form of letters. 4. or coded messages. SECTION 1: THE EE BROWSER 23 . the Save and Next button is displayed. Certain details from the defined data object record are shown in the grid (columns) on the function tab containing the data object. images. Link Name View SWIFT on Upload Image TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH Description This link is used for viewing the incoming SWIFT messages that are attached to the current transaction. This link is used for uploading attachments to the transaction.Note In some cases. Click Cancel to close the Add Image window. Current Image This link is used for viewing the attachments that are currently attached to the transaction. SECTION 1: THE EE BROWSER 24 . Click on Confirm to start uploading the selected file(s). All uploaded images are provided with a reference number. Mark the corresponding checkbox beside the file to be uploaded and then click on Delete to remove the file from the grid. Click on this reference number to view the images. Transaction Image TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH This link is used for viewing the attachments that are currently attached to the transaction.Click on Add File to allow the user to browse for a file to be uploaded. some data are oftentimes entered in the system repetitively.Lesson 4: Working with Transaction Templates A Transaction Template is a tool provided in the Standard Toolbar and is designed to make a transaction process. click the Template button from the Standard Toolbar. the transaction template may be used as a capturing tool that makes all information entered on fields reusable. say. indicate whether the template shall be open for public or private usage. Create Collection function. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 25 . However. define a name for the template. easier and time saving. especially in a registration process. Private template may be modified and used exclusively by the user who created the template. In the Template window. When running a transaction function. Save the template by clicking on the Save button. In a transaction process. all frequently used data may be entered and saved as a template. These information are saved in the system and made available for use in future transactions— information may later on be retrieved and loaded on the screen while creating a new but similar transaction. Creating Transaction Templates Transaction templates may be used for public and/or private usage: Public template may be modified by the user who created the template but may be used by other users. Then. To do this. click once more the Template button on the standard toolbar. The created template is listed in the index of the Templates window. To check the newly created template.Save the template by clicking on the Save button. buttons that allow update or deletion of a saved template are also provided. click the Load button in the Standard Toolbar. In this window. A confirmation message is displayed if the operation has been completed. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 26 . Utilising Saved Templates To utilize a Saved template. When a confirmation message appears. It is recommended to mark the IsOnchange checkbox to make the function execute all validations attached to the fields that had just received data from a loaded template. Data that was saved under the selected template is then. click OK. select a template from the list then click on the Load button.From the Template window. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 27 . retrieved into the transaction screen. Refused A record that is refused during the authorisation/release/approval process. While in this status. saved or deleted. The transaction status determines a record’s maintenance classification which in turn. deleting records. Each trade module in Eximbills Enterprise is provided with common maintenance functions. Transaction Statuses that may be assigned to a record are as follows: Status Description Pending This status indicates that the record requires validation and authorization (P) While in this status. the transaction is waiting to be finally authorised or refused by the authorizer. the transaction may not be processed going to the next stage of the transaction cycle. The user may have started working on the transaction record but have opted to save the record with the intention of finishing the transaction at a later time or date. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 28 . and viewing transaction details. a corresponding transaction status is assigned to it. (S) While in this status. Partially Authorized (T) Master (M) A record that has undergone validation.Lesson 5: Maintaining Transaction Records For each transaction that is released. While in this status. the transaction may be corrected and resubmitted. This status indicates that the record may have already been finally authorised. the transaction may be processed going to the next stage of the transaction cycle. These functions are made available to perform maintenance processes such as releasing records. identifies the applicable actions that may be available for a user in maintaining a record. Saved A record in Saved status (S) This indicates an incomplete record. Such statuses are: Pending Saved Refused These transaction records may be modified by using any of the following transaction functions: Continue Saved Fix Pending The CONTINUE SAVED function The Continue Saved function is used to correct or modify a transaction record that is either: Saved A transaction record is considered Saved if during transaction processing. the SAVE button is clicked. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 29 . This is done when the user started working on the transaction record but have opted to save the record with the intention of finishing the transaction at a later time or date. or Refused A transaction record is considered Refused if during Supervisor Release.Modifying a Non-Master Transaction A non-master transaction refers to any record that is not in master status. the Refuse option is marked. This is done when the user started working on the transaction record but have opted to save the record with the intention of finishing the transaction at a later time or date. When the Continue Saved function is accessed. Continue processing the saved record as needed. a catalog screen is displayed. 2. 3. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 30 . This is used to filter records by reference number.1. all saved and refused transactions are displayed. Click on the Next button. The system filters the records. When no filter information is entered. then confirm the transaction. Select a particular record and click on the Next button to proceed with the editing of the transaction data. all pending transactions are displayed. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 31 . The system filters the records. 3. This is used to filter records by reference number. 2. When the Fix Pending function is accessed. 1. Click on the Next button. Continue processing the record as needed. then confirm the transaction. When no filter information is entered. Select a particular record and click on the Next button to proceed with the editing of the transaction data.The FIX PENDING function The Fix Pending function is used to correct or modify data in transactions with a Pending status. a catalog screen is displayed. Records that are processed using this function require Supervisor release. a catalog screen is displayed. Select a particular record and click on the Transaction button. Click on the Next button. The ENQUIRE TRANSACTION function This function is used to view the transaction details of a record regardless of the transaction record's status. 3. When no filter information is entered. This is used to filter records by reference number. 4. Enquire Master Enquire Pending 1. A trail of events is displayed in chronological order. Note :Same Steps followed for Enquire Pending transactions. Select the particular event and click on the View button to display the details. When the Enquire Master Transaction function is accessed. The function details of the selected event are displayed. 2.Enquiring a Transaction Event-related details of a transaction record may be viewed anytime through the Enquire Transaction function. The system filters the records. all transaction records are displayed. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 32 . This process does not entirely write-off the record from the database. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 33 . Select a particular record and click on the Delete button. 2. When the Delete Pending function is accessed. When no filter information is entered. only the pending event is deleted while the record’s most recent Master state is retained. If the Delete button is clicked. Instead. a catalog screen is displayed.Deleting a Transaction A transaction record may be deleted from the system by use of any of the following functions: Delete Pending Delete Master The DELETE PENDING function This function is used to delete a transaction with a Pending status. This is used to filter records by reference number. Click on the Next button. Note In the above example. 1. The system filters the records. all Pending transactions are displayed. information of the 3rd event will be deleted and that the details of the 2nd event is treated as the latest information of the record. the pending record to be deleted is currently on its 3rd event. 3. 2. When no filter information is entered. Click on the Next button. click on the View button to view the historical file of the record. This is used to filter records by reference number. When the Delete Master function is accessed. The system filters the records. Before deletion. the entire record (and its events) is deleted from the system. Select the event to be viewed and click on the View button to display the details. Click on the Cancel button to go back to the main Delete Master window. 4. a catalog screen is displayed. The event details are displayed. In this procedure.The DELETE MASTER FUNCTION This function is used to delete a transaction with a Master status. 1. all transactions with Master status are displayed. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 34 . The system then deletes the record and all its events. the Unlock Transaction function is used to unlock the record and make it available for processing. The UNLOCK TRANSACTION function The Unlock Transaction function filters all locked transactions and unlocks them. When this occurs.5. When this function is accessed. Unlocking Records There are instances when records are locked by the system due to certain operations performed. This may be used to filter records by reference number. Click on the Delete button to proceed with the delete process. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 1: THE EE BROWSER 35 . a catalog screen is displayed. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 36 Serial Number: TMM-00001-EBGH .SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS Expectation At the end of this section. the learner is expected to understand how to create and maintain customer and bank records. The Static Data module is used for creating and maintaining customer records in the system while the Bank Maintenance module is used for creating and maintaining a database of banks in the system. These are the Static Data and Bank Maintenance.Overview Customer and Bank information are stored and maintained in two separate modules. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 37 Serial Number: TMM-00001-EBGH . These information are retrieved and used dynamically during transaction processing. Existing customer records may be modified using the Edit Customer function. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 38 Serial Number: TMM-00001-EBGH . Transaction Stages A customer may be added using the Add New Customer function. All newly created customer information require authorization.Lesson 1: Maintaining Customer Data Customer information are created and maintained using the functions of the Static Data module. The Authorize/Supervisor Release function may be used for this purpose. These functions may be found in the Customer Maintenance function group. All modified customer information require authorization. The Authorize/Supervisor Release function may be used for this purpose. Records created in this function require release. the information may be dynamically retrieved and used while performing transactions on business modules. Generated Output: SWIFT : None Document : None Voucher : None Related Function Group: Customer Maintenance 2 Authorize / Supervisor Release Function Description: This function is used to authorize the created customer.Transaction Flow Maintaining Customer Data: CREATE Create a new customer by running the Add New Customer function. After authorization. Generated Output: SWIFT : None Document : None Voucher : None Related Function Group: Customer Maintenance TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 39 Serial Number: TMM-00001-EBGH . 1 Add New Customer Function Description: This function is used to add a new customer in the system. may be defined. may be defined.Transaction Processing: Adding a New Customer 1. Any ID entered that is non-existent in Finacle is not allowed to be stored in EE. 3. Main tab The Customer ID that is to be defined here should be the same ID that is associated to the Customer in the Core System (Finacle). in a format used in SWIFT. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 40 Serial Number: TMM-00001-EBGH . Confirm the transaction. Postal Address Where the customer address(es). in postal format. SWIFT Address Where the customer address(es). Run the Add New Customer function. Static Data > Customer Maintenance > Add New Customer 2. Specify the needed customer information on the tabs provided. Margin Info tab Where margin information. These information are dynamically retrieved while performing transactions on the provided product types/services. Notes tab Other related notes or information related to the Customer about certain products may be specified. may be defined. related to the issuance of specific product transactions. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 41 Serial Number: TMM-00001-EBGH . 4. These imported account numbers are then associated to the customer record in EE. If a new account number is added to a Customer in the Core System and that the customer has an existing record in EE. all account numbers of the customer (in various currencies. the Customer Account Retrieval function may be used to update the customer record in EE. Static Data > Customer Maintenance > Supervisor Release Mark the Release option and then click on the Confirm button. when clicked. Authorize the created customer record by running the Authorize function. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 42 Serial Number: TMM-00001-EBGH . The Inquiry Account button. retrieves all the account numbers of the customer from Finacle and stores the retrieved account numbers in EE. if available) are automatically imported into EE from the core system. Notes Upon release of the created customer record in EE. SWIFT : None Document : None Voucher : None Related Function Group: Customer Maintenance Transaction Processing: Editing a Customer Record 1. Run the Supervisor Release function to apply the changes made to the details of the customer. 1 Edit Customer Function Description: Generated Output: This function is used to modify the details of a customer. Create the necessary changes and then click on the Confirm button. SWIFT : None Document : None Voucher : None Related Function Group: Customer Maintenance 2 Authorize Function Description: Generated Output: This function is used to authorize or apply the changes made on the customer details. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 43 Serial Number: TMM-00001-EBGH . 3. Mark the Release option and then click on the Confirm button. the information may be dynamically retrieved and used while performing transactions on business modules. After authorization. Records created in this function require authorization. Static Data > Customer Maintenance > Edit Customer 2.Maintaining Customer Data: EDIT Modify details of a customer by running the Edit Customer function. Run the Edit Customer function. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 44 Serial Number: TMM-00001-EBGH . The Authorize function may be used for this purpose. All modified bank information require authorization. The Authorize function may be used for this purpose. Prior to production. Should a new bank record be required to be created. Transaction Stages Bank information may be added using the Add New Bank function. the bank record may be created through the functions of the Bank Maintenance function group. All newly created bank information require authorization.Lesson 2: Maintaining Bank Records Bank information are created and maintained using the functions of the Bank Maintenance module. Existing bank records may be modified using the Edit Banks function. all Bank records are migrated into Eximbills Enterprise. These functions may be found in the Bank Maintenance function group. 1 Add New Bank Function Description: This function is used to add a new bank in the system. Generated Output: SWIFT : None Document : None Voucher : None Related Function Group: Bank Maintenance 2 Authorize / Supervisor Release Function Description: Generated Output: This function is used to release the created bank. SWIFT : None Document : None Voucher : None Related Function Group: Bank Maintenance TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 45 Serial Number: TMM-00001-EBGH . After authorization. Records created in this function require authorization. the information may be dynamically retrieved and used while performing transactions on business modules.Transaction Flow Maintaining Bank Data: CREATE Create a new bank by running the Add New Bank function. 3. 4.Transaction Processing: Adding a New Bank 1. Run the Add New Bank function. Bank Maintenance > Bank Maintenance > Add New Bank 2. Specify the needed bank information on the tabs provided. Main tab Communication Information tab Where bank's communication details may be defined. Release the created bank record by running the Release Pending Bank function. Confirm the transaction. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 46 Serial Number: TMM-00001-EBGH . Bank Maintenance > Bank Maintenance > Release Pending Bank Mark the Release option and then click on the Confirm button. the information may be dynamically retrieved and used while performing transactions on business modules. Create the necessary changes and then click on the Confirm button. After authorization. SWIFT : None Document : None Voucher : None Related Function Group: Bank Maintenance 2 Authorize Function Description: Generated Output: This function is used to authorize or apply the changes made on the bank details. TRANSACTION MANAGEMENT AND MAINTENANCE SECTION 2: MAINTAINING CUSTOMER AND BANK RECORDS 47 Serial Number: TMM-00001-EBGH . Bank Maintenance > Bank Maintenance > Edit Banks 2.Maintaining Bank Data: EDIT Modify details of a bank by running the Edit Banks. Records created in this function require release. Run the Authorize function to apply the changes made to the bank details. SWIFT : None Document : None Voucher : None Related Function Group: Bank Maintenance Transaction Processing: Editing a Bank Record 1. Run the Edit Banks function. 1 Edit Banks Function Description: Generated Output: This function is used to modify the details of a bank. 3. Mark the Release option and then click on the Confirm button. SECTION 3: IMPORT LETTER OF CREDIT Expectations At the end of this section. the learner is expected to: use a defined Approval record in creating an Import LC record be able to perform the processes in an Import Letter of Credit by using the functions of the Import Letter of Credit (IPLC) module TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 48 . or negotiates in accordance with the reimbursement instructions of the Issuing Bank as stated in the credit. The Seller’s bank can also add its assurance of payment to the Seller by confirming the letter of credit — a double security of payment. The Issuing Bank checks the negotiated documents and reimburses the Negotiating Bank for its payment in the terms of the credit.Overview A letter of credit (LC) is a document that is issued by a bank stating its commitment to pay the Exporter (or Seller) a stated amount of money on behalf of an Importer (or Buyer) so long as the Seller meets specific documentary terms and conditions. Transaction Stages This stage refers to processes involving the Issuance of the Letter of Credit. The Negotiating Bank then sends the documents to the Issuing Bank for reimbursement. the Beneficiary prepares all document drafts and presents them to the Negotiating bank for payment under the terms of the credit. If the Bank is the Issuing Bank acting on instructions from the Buyer. the Negotiating Bank pays. This stage refers to processes involving the Amendment of the Letter of Credit. the Buyer assures the Seller of payment through the Buyer’s bank. After the shipment of goods. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 49 . The Buyer applies for a letter of credit from his bank (the Issuing Bank) in favor of the Seller (the Beneficiary of the letter of credit). The Import Letter of Credit (IPLC) module controls the operations of the Issuing Bank in an import LC transaction. then the LC is an Import LC. and the Buyer is assured that payment is only made to the Seller if the terms and conditions of the letter of credit are met. accepts. The Advising Bank checks the documents against the terms and conditions of the credit. The Seller’s bank (the Advising Bank) advises the Seller of the receipt of the letter of credit. By applying for a commercial letter of credit from the Buyer’s bank. If the documents comply with the terms of the credit. This stage refers to the processes involved upon receiving the documents presented by the Beneficiary. This stage refers to the processes involved in settling the LC according to specified payment terms. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 50 . This include: examining of the received documents against the terms and conditions of the LC determining whether the terms and conditions of the LC have been complied with or are discrepant This stage refers to the processes involved in handling discrepant documents. Lesson 1: Issuance The issuance of an LC may be preformed using the following transaction functions Issue Letter of Credit One-Step Issue Back-to-Back LC One Step Issue Transfer LC One Step Transaction Function Details Import Letter of Credit Issuance: Issuing a Commercial Letter of Credit Issue Letter of Credit One Step Function Description: This function is used issue a commercial letter of credit. an authorized Approval transaction for LC Issuance must be in place. Generated Output: SWIFT : MT700 / MT701 : MT705 (optional) Document : Yes GAPI : Yes Voucher : Yes Related Function Group: IPLC Issuance TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 51 . Prior to running this function. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 52 . Main tab Use the lookup button provided to search for the approval transaction to be used in processing the issuance of the LC. Secure an approval reference number from the Approval and Limits module prior to the processing of an Issue Letter of Credit 2.Transaction Processing 1. information defined in the selected approval transaction are automatically populated in the fields of the Issue Letter of Credit One Step function. Specify the needed information using the tabs provided and then confirm the transaction. Once selected. Import Letter of Credit > IPLC Issuance > Issue Letter of Credit One Step 3. Run the Issue Letter of Credit function. Other necessary party details may be define here. Parties II tab Party information pertaining to the banks that are to be involved in the transaction may be defined here. Tenor tab Information regarding the LC Tenor may be defined here. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 53 .Parties I tab Details from the approval transaction are displayed. Documents tab Information regarding the required documents that are to be presented upon shipment of the goods may be defined here. Instructions tab Information regarding the instructions of the Issuing bank to the Paying bank may be specified here. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 54 .Goods tab Information regarding the goods that are to be shipped may be defined here. Right across each pay currency are account number fields where the appropriate account numbers may be selected to be used for debiting the charge from the customer's account.Charges tab This is where the different charges and commissions that are to be collected for this specific transaction may be viewed. Notes tab Use this tab to add notes related to the issuance of the letter of credit. Advice tab Use this tab configure an Advice to a specified recipient. Use the Customer Pay Currency (Trx) and Customer Pay Currency dropdown fields to specify the currencies to be used in collecting the charge or commission. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 55 . The user may specify the account number where the charges are to be collected in the account number (AC/NO) field provided. Specify the needed information using the tabs provided and then confirm the transaction. Perform the Advice process using the functions of the Import Letters of Credit module. Perform the Supervisor Release function. 2. SWIFT Prior to running this function. Import Letter of Credit > IPLC Issuance > Issue Back-to-Back LC One Step 3. Run the Issue Back-to-Back LC One Step function. Perform the Supervisor Release function. 4. Import Letters of Credit > IPLC Maintenance >Supervisor Release Import Letter of Credit Issuance: Issuing a Back-to-Back LC Issue Back-to-Back LC One Step Function Description: Generated Output: This function is used to issue a Back to Back LC This function requires creation of an Advising record from the Export Letter of Credit Module. Document : YES Gapi : YES Voucher : YES : MT700 / MT701 : MT705 (optional) Related Function Group: IPLC Issuance Transaction Processing: 1.1. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 56 . an authorized Approval transaction for LC Issuance must be in place. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 57 . Specify the needed information using the tabs provided and then confirm the transaction. an authorized Approval transaction for Transfer LC must be in place. SWIFT Prior to running this function. Import Letter of Credit > IPLC Issuance > Issue Transfer LC One Step 3.Import Letter of Credit Issuance: Issuing a Transfer LC Issue Transfer LC One Step Function Description: Generated Output: This function is used to issue a Transfer LC This function requires creation of an Advising record from the Export Letter of Credit Module. Perform Supervisor Release function. Run the Issue Transfer LC One Step function. Document : No Gapi : YES Voucher : YES : MT720 : MT705 (optional) Related Function Group: IPLC Issuance Transaction Processing: 1. 4. Perform the Advice process using the functions of the Import Letters of Credit module. 2. Lesson 2: Amendment In the event that the applicant requests for an amendment of an issued LC. Issue Amendment One Step Cancel LC Amendment Registration Transaction Flow Approval Category / Product Type Import Letter of Credit Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 58 . any of the following transaction functions may be used to perform the amendment and issue the amended LC. Select the related Approval transaction for the Amendment Request.Transaction Function Details Import Letter of Credit Amendment: Issuing an Amendment to a Commercial LC Issue Amendment One Step Function Description: Generated Output: This function is used to amend an issued LC. an authorized Approval transaction for LC Amendment must be in place. Run the Issue Amendment One Step function. Import Letter of Credit > IPLC Amendment > Issue Amendment One Step 2. Document : Yes GAPI : Yes Voucher : Yes Related Function Group: IPLC Amendment Transaction Processing 1. SWIFT : MT707 Prior to running this function. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 59 . Review the details and then confirm the transaction. The system automatically retrieves the amendment details from the selected approval transaction and displays the information onto the related fields in the Issue Amendment One Step screen. Perform the Supervisor Release function.3. Perform the Supervisor Release function. 3. Use the Instructions tab on the transaction screen to specify instructions to Cancel the LC. Import Letters of Credit >IPLC Maintenance>Issue LC Amendment One Step Import Letter of Credit Amendment: Cancelling the LC Cancel LC Amendment Registration Function Description: Generated Output: This function is used to Cancel the LC. Import Letter of Credit > IPLC Amendment > Cancel LC Amendment Registration 2. Confirm the Transaction. Run the Cancel LC Amendment Registration function. SWIFT : MT707 Document : None Voucher : None Related Function Group: IPLC Amendment Transaction Processing: 1. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 60 . Lesson 3: Presentation Upon receipt of the of the documents from the Beneficiary through the Advising Bank / Negotiating Bank. The functions that may be run to perform this process are as follows: Register Documents Register Waiver Transaction Flow Import Letter of Credit Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 61 . the documents may now be registered in the system to check for compliance of the documents with the terms and conditions of the LC. Transaction Function Details Import Letter of Credit Presentation: Registering and Checking for Compliance of received Documents Register Documents LC Function Description: Generated Output: This function is used to create a drawing on an LC based on the documents received from the Advising Bank / Negotiating Bank. the specified presenting bank is notified. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 62 . SWIFT : MT999 If the documents are found compliant. Voucher : Yes Related Function Group: IPLC Presentation Transaction Processing 1. Specify whether the document is clean or discrepant on the Document Status field provided. Import Letter of Credit > IPLC Presentation > Register Documents LC 2. Specify the needed information about the received documents using the tabs provided. Document : Yes Gapi : No If the documents are found with discrepancies. When done. Select the LC record where documents are to be registered with. the record may proceed settlement. run the Register Documents function. Upon receipt of documents. click on the confirm button. 3. Main tab Use this tab to record the status of the received document. Perform the Supervisor Release function.Documents tab Use this tab to record the documents that have been received. 4. Import Letters of Credit > IPLC Maintenance > Supervisor Release Import Letter of Credit Presentation: Drawing through a received for Waiver Register Waiver Function Description: Generated Output: This function is used to register a drawing through an Advice of Discrepancy / Waiver Request received by mail or other authenticated message. SWIFT : MT999 (optional) Document : Yes Voucher : None GAPI : No Related Function Group: IPLC Presentation TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 63 . Discrepancies tab Use this tab to indicate the discrepancies as specified in the received request for waiver. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 64 . Main tab Use this tab to specify presentation information as indicated in the received request for waiver. 3. Upon receipt of the request for waiver. run the Register Waiver Request function. Import Letter of Credit > Document Examination> Register Waiver Request 2. When done. Select the LC record where documents are to be registered with. Specify the needed information about the received documents using the tabs provided. click on the confirm button.Transaction Processing 1. Perform the Supervisor Release function.4. Import Letters of Credit > IPLC Maintenance > Supervisor Release TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 65 . Transaction Flow Approval Category / Product Type Import Letter of Credit Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 66 .Lesson 4: Settlement In the event that the presented documents are found clean or with waived discrepancies. the LC may be settled through the Pay/Accept function. Transaction Function Details Import Letter of Credit Settlement: Payment of LC Pay/Accept Function Description: Generated Output: This function is used to process payments for a Sight LC and perform Acceptance. Generated Output: SWIFT : MT202 : MT103 Document : Yes Voucher : Yes Related Function Group: Usance Documents TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 3: IMPORT LETTER OF CREDIT 67 . an authorized Approval transaction for LC Settlement must be in place. Payment at Maturity Function Description: This function is used to process payments through an MT202/MT103 message for Acceptance records that had reached its maturity date. This function is run after presentation of documents that are clean SWIFT : MT202 / MT103 Document : Yes Gapi :Yes Voucher : Yes with waived discrepancies with TT Claim Prior to running this function. SECTION 4: EXPORT LETTER OF CREDIT Expectations At the end of this section. the learner is expected to: use a defined Approval record in creating an Export LC record be able to perform the processes in an Export Letter of Credit by using the functions of the Export Letter of Credit (EPLC) module TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 68 . the Advising Bank must inform without delay the bank from which the instructions have been received. This stage refers to processes involving the Amendment of a Letter of Credit. If the Advising Bank is not able to establish sufficient authenticity of the credit. If the Advising Bank agrees to advice the credit.Overview A letter of credit (LC) is a document that is issued by a bank stating its commitment to pay the Exporter (or Seller) a stated amount of money on behalf of an Importer (or Buyer) so long as the Seller meets specific documentary terms and conditions. Confirming. This stage refers to the processes involved upon receiving the documents presented by the Beneficiary. Transaction Stages This stage refers to processes involving the Advising of a received Letter of Credit. If the bank is the Advising Bank acting upon instructions from the Issuing Bank. This include: examining of the received documents against the terms and conditions of the TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 69 . The Advising Bank advises the Beneficiary on the terms and conditions of the credit. the LC is then an Export LC. the Advising Bank must inform the Issuing Bank without delay. but at the same time must inform the Beneficiary that the authenticity of that credit has not been established. The Advising Bank (the Seller’s bank) advises the seller of the receipt of the letter of credit. If the Advising Bank should choose not to advice the credit. it must take reasonable care to check the apparent authenticity of the credit. The Buyer applies for a letter of credit from the Issuing Bank (the Buyer’s bank) in favor of the Seller (the Beneficiary of the letter of credit). The Advising Bank may choose to advice the unauthenticated credit. The Export Letter of Credit (EPLC) module controls the operations of the Advising. or Nominated Bank in an export LC transaction. LC determining whether the terms and conditions of the LC have been complied with or are discrepant This stage refers to the processes involved in handling discrepant documents. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 70 . This stage refers to the processes involved in settling the LC according to specified payment terms. Lesson 1: Advice A received LC may be registered into the system through the functions of the LC Advising function group. These functions are as follows: Process MT705 Register Pre-Advice Process 700/710/720 Advice LC One Step Transaction Flow Export Letter of Credit Module function Transaction Function Details Export Letter of Credit Advising: Advising a received Letter of Credit Process MT705 Function Description: This function is used to process the pre-advice of a letter of credit that is received through a SWIFT MT705. Generated Output: SWIFT : MT705 or : MT730 Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Advice TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 71 . Transaction details are retrieved from the demerged SWIFT MT700.Register Pre-Advice Function Description: This function is used to register the pre-advice of a letter of credit that is not received in the MT 705 format. Generated Output: SWIFT : MT705 or : MT730 Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Advice Process 700/710/720 Function Description: This function is used for the registration of the advice of an export letter of credit that is received through a SWIFT MT700. or MT720. Generated Output: SWIFT : MT 710 : MT 730 Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Advice TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 72 . or MT720 Generated Output: SWIFT : MT710 : MT730 Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Advice Advice LC One Step Function Description: This function is used to process the advice of an export letter of credit to the Beneficiary without having to go through the Pre-Advice process. MT710. MT710. the amendment details may be reflected in the system and advised to the beneficiary by use of the following functions: Advise Amendment One Step Process MT707 Beneficiary Response Transaction Flow Export Letter of Credit Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 73 .Lesson 2: Amendment In the event that the LC is amended. : MT707 : MT730 Document : Yes Voucher : Yes GAPI : NO Related Function Group: EPLC Amendment Advise Amendment One Step Function Description: Generated Output: This function is used to Advise the Amendment of the LC. This is usually run if no MT707 is demerged in the system.Transaction Function Details Export Letter of Credit Amendment: Processing an Amendment to an LC Process MT707 Function Description: Generated Output: SWIFT This function is used to register the advice of a letter of credit amendment instruction received through SWIFT MT707. SWIFT : MT707 : MT730 Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Amendment Beneficiary Response Function Description: This function is used to accept or reject a detrimental amended LC record. Generated Output: SWIFT : MT999 Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Amendment TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 74 . the documents may now be registered in the system to check for compliance of the documents with the terms and conditions of the LC. The functions that may be run to perform this process are as follows: Register Documents Advised By Us Register Documents Not Advised By Us Check Documents Send Documents Beneficiary Discrepancy Response Refused Documents TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 75 .Lesson 3: Presentation Upon receipt of the of the documents from the beneficiary. Transaction Flow Export Letter of Credit Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 76 Transaction Function Details Export Letter of Credit Presentation: Registering and Checking for Compliance of received Documents Register Documents Not Advised By Us Function Description: Generated Output: This function is used to register the receipt of the required documents except where an advice of discrepancy has already been received. SWIFT : MT999 Document : Yes This function is run when the related LC is advised by another bank: a new record is created in the database, and new drawing and advising reference numbers are generated. Voucher : None GAPI : No Related Function Group: EPLC Presentation Register Documents Advised By Us Function Description: This function is used to register the receipt of the required documents except where an advice of discrepancy has already been received. This function is run when the related LC is advised by the bank (i.e., as the Advising Bank). Generated Output: SWIFT : MT999 Document : Yes Voucher : None GAPI : NONE Related Function Group: EPLC Presentation TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 77 Check Documents Function Description: Generated Output: This function is used to create a drawing on an LC based on the documents received from the beneficiary. SWIFT : MT750 Document : Yes If the documents are found compliant, the record may proceed settlement. Voucher : None GAPI : NONE Related Function Group: EPLC Presentation Send Documents Function Description: Generated Output: This function is used in processing the dispatch of the documents to the Issuing or Nominated bank. If the documents are found compliant, the record may proceed settlement. SWIFT : MT999 Document : Yes Voucher : Yes GAPI : NONE Related Function Group: EPLC Presentation In the event that the documents are found with discrepancies, the following functions may be used to perform the appropriate action: Beneficiary Discrepancy Response Refused Documents TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 78 Perform the Supervisor Release function.Export Letter of Credit Presentation: Handling documents with discrepancies Beneficiary Discrepancy Response Function Description: Generated Output: This function is used for the registration of the instruction from the Beneficiary in response to an advice of the discrepancies that are noted in the drawing under the letter of credit. 2. SWIFT : MT999 Document : Yes Voucher : None GAPI : None Related Function Group: EPLC Discrepancies Refused Documents Function Description: Generated Output: This function is used in the registration of the refusal of a drawing under the letter of credit. Perform the appropriate discrepancy-handling process using the functions provided. This function ends the negotiation process for unaccepted discrepant documents SWIFT : MT34 Document : Yes Voucher : None GAPI : None Related Function Group: EPLC Discrepancies Transaction Processing: 1. 3. Specify the needed information using the tabs provided and then confirm the transaction. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 79 . Lesson 4: Settlement Transaction Flow Approval Category / Product Type Export Letter of Credit Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 80 . SWIFT : None Document : Yes Voucher : Yes GAPI : No Related Function Group: EPLC Settlement Transaction Processing: 1.In the event that the presented documents are found clean or with waived discrepancies. 3. Specify the needed information using the tabs provided and then confirm the transaction. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 81 . Transaction Function Details Export Letter of Credit Settlement: Payment of LC Pay/Accept Function Description: Generated Output: This function is used to process payments for a Sight LC and perform Acceptance. Prior to running this function. an authorized Approval transaction Assignment of Proceeds of LC must be in place. 2. the LC may be settled through the Pay/Accept function. Perform the appropriate settlement process using the functions provided. Perform the Supervisor Release function. an authorized Approval transaction for Discounting must be in place. Payment at Maturity Transaction Function Details Payment at Maturity Function Description: This function is used to process payments for Acceptance records that had reached its maturity date.Should a request of a discount is received. Prior to running this function. SWIFT : MT999 Document : Yes Voucher : Yes GAPI : NO Related Function Group: EPLC Settlement When the record has undergone Acceptance (Usance). the following functions may be used to effect payment and process Usance documents. Generated Output: SWIFT : MT799 Document : Yes Voucher : Yes GAPI : NO Related Function Group: EPLC Settlement TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 4: EXPORT LETTER OF CREDIT 82 . the following function may be used to process the discount: Discount Discount Function Description: Generated Output: This function is used to perform discounting on an LC record. SECTION 5: EXPORT COLLECTION Expectation At the end of this section. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 83 . the learner is expected to perform the processes in an export collection by using the functions of the Export Collection (EXCO) module. The buyer's bank releases the documents to the buyer only when the payment or acceptance to pay at some future date occurs as agreed between the buyer and the seller. The banks in this case only act as collecting agents. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 84 . acting upon instructions from the exporter. Transaction Stages This stage refers to processes involving the registration of a received request for collection.Overview In a Collection transaction. If the bank is the Remitting bank. This stage refers to processes involving any Amendment requested to the collection. which informs the buyer that it is holding these documents pending payment. This stage refers to the processes involved in the settlement or acceptance of a draft in a collection. such as commercial invoices and bills of lading. then the collection is an Export Collection. to the buyer's bank. the seller retains control over the merchandise while the seller's bank transmits the seller's documents. Generated Output: SWIFT : MT499 / MT999 Document : Yes Voucher : No GAPI : Yes Related Function Group: Register Collection Create Collection (Copy Existing) Function Description: This function is used to allow the user to use an existing collection record as a template for creating a new Collection. Generated Output: SWIFT : MT499 / MT999 Document : Yes Voucher : No GAPI : No Related Function Group: Register Collection TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 85 .Lesson 1: Registration The creation of a collection record may be preformed using the following transaction functions Create Collection Create Collection (Copy Existing) Transaction Function Details Export Collection: Creating a Collection Record Create Collection Function Description: This function is used to create a collection record based on the received request by the customer. Transaction Processing 4. Perform the Supervisor Release function. Specify the needed information using the tabs provided and then confirm the transaction. Run the Create Collection function. Export Collection > EXCO Registration > Create Collection 5. Export Collection > EXCO Maintenance > Supervisor Release TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 86 . 6. Lesson 2: Amendment Amendment of a collection record may be performed using the Amend/Discharge function. Transaction Flow Export Collection Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 87 . Specify the needed information using the tabs provided and then confirm the transaction. Export Collection> EXCO Maintenance > Supervisor Release TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 88 . Run the Create Collection function.Amend / Discharge Function Description: This function is used to perform any of the following amendments on a collection record: Change Bill Amount/ Maturity Free of Payment Close Files Generated Output: SWIFT : MT430 Document : NO Voucher : YES GAPI : YES Change Payment Term All Others Related Function Group: Amendment Transaction Processing 1. Perform the Supervisor Release function. Export Collection > Amendment > Amend/Discharge 2. 3. Transaction Should be on term D/P: o Payment (D/P) Transaction Should be on term D/A o TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH Settlement at Maturity SECTION 5: EXPORT COLLECTION 89 .Lesson 3: Payment and Acceptance As the payment terms in a collection transaction may be through: Documents Against Payment (D/P) Documents Against Acceptance (D/A) The following functions may be used to process purchase/discount and payments based on the terms specified in the collection record. Transaction Flow Approval Category / Product Type Export Collection Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 5: EXPORT COLLECTION 90 . TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH Generated Output: SWIFT : None Document : No Voucher : No GAPI : No SECTION 5: EXPORT COLLECTION 91 . Specify the needed information (perform debit and credit entries) using the tabs provided and then confirm the transaction. This is usually run when the collection proceeds has been received from the Collecting Bank. Perform Supervisor Release function. Export Collections> EXCO Settlements > Payment 2.Transaction Function Details Export Collection: Payment with term D/P Payment Function Description: Generated Output: This function is used to process payment for a collection record. This is usually run when the collection proceeds has been received from the Collecting Bank. Export Collection: Payment with term D/A Settlement at Maturity (D/A) Function Description: This function is used to process payment for a collection record that has undergone acceptance. Run the Payment function. SWIFT : None Document : Yes Gapi : Yes Voucher : Yes Related Function Group: EXCO Settlement Transaction Processing: 1. 3. SECTION 6: IMPORT COLLECTION Expectation At the end of this section. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 92 . the learner is expected to perform the processes in an import collection by using the functions of the Import Collection (IMCO) module. then the collection is an Import Collection. The buyer's bank releases the documents to the buyer only when the payment or acceptance to pay at some future date occurs as agreed between the buyer and the seller. or is the Presenting Bank acting upon instructions from the Collecting Bank.Overview In a Collection transaction. such as commercial invoices and bills of lading. This stage refers to the processes involved in the settlement or acceptance of a draft in a collection. This stage refers to processes involving any Amendment requested to the collection. If the bank is the Collecting Bank acting upon instructions from the Remitting Bank. The banks in this case only act as collecting agents. the seller retains control over the merchandise while the seller's bank transmits the seller's documents. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 93 . to the buyer's bank. Transaction Stages This stage refers to processes involving the registration of a received request for collection. which informs the buyer that it is holding these documents pending payment. Lesson 1: Registration The creation of a collection record may be preformed using the following transaction functions FDO Import Collection Create Collection Create Collection (Copy Existing) Transaction Function Details Import Collection: Creating a Collection Record Create Collection Function Description: This function is used to create a collection record based on the received collection order by the Remitting Bank. Generated Output: SWIFT : MT410 Document : Yes Voucher : Yes Related Function Group: IMCO Registration TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 94 . Generated Output: SWIFT : MT410 Document : Yes Voucher : No GAPI :No Related Function Group: IMCO Registration Create Collection (Copy Existing) Function Description: This function is used to allow the user to use an existing Collection record as a template for creating a new Collection. Run the Create Collection function. Import Collection > IMCO Maintenance > Supervisor Release TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 95 . 3.FDO Inward Doc Collection Function Description: This function is used Create Collection Generated Output: SWIFT : No Document : No Voucher : No GAPI :No Related Function Group: FDO Import Collection Transaction Processing 1. Specify the needed information using the tabs provided and then confirm the transaction. Perform the Supervisor Release function. Import Collection > IMCO Registration > Create Collection 2. Lesson 2: Amendment Amendments to an import collection transaction may be according to: Amendment Amend an Accepted Bill Discharge Transaction Flow Approval Category / Product Type Import Collections Module function Transaction Function Details Import Collection: Amendment Amendment Function Description: This function is used to Amendment Generated Output: SWIFT : MT999 Document : Yes Voucher : None GAPI : None Related Function Group: IMCO Amendment TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 96 . Specify the needed information (Amendment details) using the tabs provided and then confirm the transaction. Generated Output: SWIFT : None Document : None Voucher : None GAPI : None Related Function Group: IMCO Amendment Discharge Function Description: This function is used to perform the amendment or discharge of a collection record based on the registered response to the discharge request from the remitting bank. Perform the Supervisor Release function. Import Collection > IMCO Amendment > Amendment 2. Generated Output: SWIFT : MT999 : MT430 Document : Yes Voucher : Yes GAPI :NO Related Function Group: IMCO Amendment TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 97 .Transaction Processing: 1. Import Collection: Amend an Accepted Bill Amend an Accepted Bill Function Description: This function is used to Amendment an accepted bill of a collection record. Run the Amendment function. Transaction should be on term D/P: o Payment (DP ) Transaction should be on term D/A o TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH Settlement at Maturity SECTION 6: IMPORT COLLECTION 98 .Lesson 3: Acceptance and Payment As the payment terms in a collection transaction may be through: Documents Against Payment (D/P) Documents Against Acceptance (D/A) The following functions may be used to process payments based on the terms specified in the collection record. Transaction Flow Approval Category / Product Type Import Collections Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 99 . Run the Payment (DP) function. Perform the Supervisor Release function. 3. Import Collection > IMCO Settlement > Payment (D/P) 2. Generated Output: SWIFT : MT202/ MT103 Document : Yes Voucher : Yes GAPI : NO Related Function Group: IMCO Settlement TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 6: IMPORT COLLECTION 100 .Transaction Function Details Import Collection: Payment with term D/P Payment (DP) Function Description: Generated Output: This function is used to process payment for a collection record. Specify the needed information (perform debit and credit entries) using the tabs provided and then confirm the transaction. SWIFT : MT202 / MT103 Document : Yes Voucher : Yes GAPI : No Related Function Group: IMCO Settlement Transaction Processing: 1. Import Collection: Payment with term D/A Settlement at Maturity ( D / A ) Function Description: This function is used to process payment for a collection record that has undergone acceptance. SECTION 7: SHIPPING GUARANTEE Expectations At the end of this section. the learner is expected to: use a defined Approval record in creating an Shipping Guarantee record be able to perform the processes in a Shipping Guarantee transaction by using the functions of the Shipping Guarantee (SHGT) module TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 7: SHIPPING GUARANTEE 101 . The buyer wishes to take possession of the goods to avoid demurrage and costs. It also indemnifies the shipping company against any costs or expenses they may incur by their so doing. so asks the Bank to issue a guarantee to the shipping company to obtain release.Overview In an Import Letter of Credit or Import Collection transaction. As the bank will be receiving the original documents under the Collection or Letter of Credit. it will authorise the shipping company to release goods without production of the original Bill of Lading and promises to produce it when it arrives. Transaction Stages This stage refers to processes involving the Issuance a Shipping Guarantee for use in either: a Letter of Credit transaction or a Collection transaction TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 7: SHIPPING GUARANTEE 102 . the ship may arrive before the arrival of the original documents. Specify the needed information using the tabs provided and then confirm the transaction. Shipping Guarantee > SHGT Issuance > Issue SG Against LC One Step 2. SWIFT : MT999 Document : Yes Voucher : Yes GAPI : NO Related Function Group: SHGT Issuance Transaction Processing 1. 3. Run the Issue SG Against LC One Step function. Prior to running this function.Lesson 1: Issuance A Shipping Guarantee may be issued against a Letter of Credit Issuance of a Shipping Guarantee (LC) Issuance of a Shipping Guarantee against an LC transaction may be done using the Issue SG Against LC One Step function. Issue SG Against LC One Step Function Description: Generated Output: This function is used to issue a Shipping Guarantee against an LC. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 7: SHIPPING GUARANTEE 103 . Perform the Supervisor Release function. an authorized Approval transaction for SG Issuance must be in place. SECTION 8: OUTWARD GUARANTEE Expectations At the end of this section, the learner is expected to: use a defined Approval record in creating an outward guarantee record be able to perform the processes in an Outward Guarantee transaction by using the functions of the Outward Guarantee (GTEE) module TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 104 Overview Letters of guarantee, also known as bonds, are issued by a ‘guarantor’, usually a bank, on behalf of a party under contract in an import-export transaction. Through this instrument, the Bank vouches that the Applicant can fulfill obligations stipulated in the contract. Hence, this serves as a form of security for the Beneficiary of the Guarantee should the other party fail to fulfill his contractual obligations. Should obligations not be carried out entirely, the Guarantor undertakes to pay a sum of money to the Beneficiary in compensation. The amount of money may be any sum from 1% to 100% of the original contract value. When the Issuing Bank issues a Guarantee (in favor of the Beneficiary), the Applicant is requested to sign a counter indemnity. This counter indemnity authorises the Issuing Bank to debit the Applicant’s account with the amount of money paid out under the Guarantee. The Applicant cannot refuse to reimburse the Issuing Bank in such cases. The Issuing Bank, on the other hand, does not need to seek permission to debit the account, provided that the claim is in accordance with the terms of the original Guarantee. The counter indemnity is a continuing liability to the Applicant for as long as the Guarantee is outstanding and may not be modified unless the Guarantee itself is first amended. An outward Guarantee is one wherein the Bank processes a request for Guarantee on behalf of an Applicant. The Outward Guarantee (GTEE) module controls the operations of the Issuing Bank in an Outward Guarantee transaction. Transaction Stages This stage refers to processes involving the Issuance of a Guarantee in favour of a Beneficiary. This stage refers to processes involving the Amendment of an issued Guarantee. This stage refers to the process of claiming of payment under a Guarantee. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 105 Transaction Flow Approval Category / Product Type Outward Guarantee Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 106 Lesson 1: Issuance The issuance of a Guarantee may be preformed through the following functions: Register Guarantee Transaction Function Details Outward Guarantee Issuance: Issuing a Guarantee Register Guarantee Function Description: This function is used to Issue an Outward Guarantee. Prior to running this function. Generated Output: SWIFT : MT760 or MT799 or MT999 (depending on the specified issuance type) Document : Yes Voucher : Yes Gapi :Yes Related Function Group: GTEE Issuance TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 107 . an authorized Approval transaction for Guarantee Issuance must be in place. an authorized Approval transaction for Guarantee Amendment must be in place. Generated Output: SWIFT : MT767 or MT799 or MT999 (depending on the specified issuance type) Document : No Voucher : Yes Gapi : No Related Function Group: GTEE Amendment TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 108 . the Amend Guarantee function may be used to perform the amendment. Prior to running this function.Lesson 2: Amendment In the event that the applicant requests for an amendment on the issued guarantee. Transaction Function Details Outward Guarantee Amendment: Amending a Guarantee Amend Guarantee Function Description: This function is used to continue processing and issue an amendment request on a Guarantee received from the Web. an authorized Approval transaction for Claim under Guarantee must be in place. Generated Output: SWIFT : None Document : None Voucher : None Gapi : Yes Related Function Group: GTEE Claim TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 109 . Prior to running this function.Lesson 3: Claim In the event that a Claim against a guarantee is received. details of the claim may be processed using the following transaction functions: Register Claim Claim Settlement Transaction Function Details Outward Guarantee Amendment: Processing a Claim under a Guarantee Register Claim Function Description: This function is used to register a claim received against a guarantee. Claim Settlement Function Description: This function is used to process the settlement of a registered claim against a guarantee. Generated Output: SWIFT : MT202 / MT103 Document : None Voucher : Yes Gapi :No Related Function Group: GTEE Claim TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 8: OUTWARD GUARANTEE 110 . SECTION 9: INWARD GUARANTEE Expectation At the end of this section. the learner is expected to be able to perform the processes in an Inward Guarantee transaction by using the functions of the Inward Guarantee (IWGT) module. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 111 . provided that the claim is in accordance with the terms of the original Guarantee.Overview Letters of guarantee. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 112 . Hence. The Inward Guarantee (IWGT) module controls the operations of the Beneficiary’s bank in an Inward Guarantee transaction. are issued by a ‘guarantor’. the Bank vouches that the Applicant can fulfill obligations stipulated in the contract. the Guarantor undertakes to pay a sum of money to the Beneficiary in compensation. Should obligations not be carried out entirely. Transaction Stages This stage refers to processes involving the registration of a received guarantee This stage refers to processes involving the amendment of a registered guarantee. does not need to seek permission to debit the account. The Issuing Bank. When the Issuing Bank issues a Guarantee (in favor of the Beneficiary). this serves as a form of security for the Beneficiary of the Guarantee should the other party fail to fulfill his contractual obligations. This counter indemnity authorises the Issuing Bank to debit the Applicant’s account with the amount of money paid out under the Guarantee. Through this instrument. An Inward Guarantee is one wherein the Bank is the Advising Bank acting on instructions from the Issuing Bank. usually a bank. on behalf of a party under contract in an import-export transaction. The Applicant cannot refuse to reimburse the Issuing Bank in such cases. The amount of money may be any sum from 1% to 100% of the original contract value. the Applicant is requested to sign a counter indemnity. on the other hand. The counter indemnity is a continuing liability to the Applicant for as long as the Guarantee is outstanding and may not be modified unless the Guarantee itself is first amended. also known as bonds. An Inward Guarantee transaction begins with the receipt of the Letter of Guarantee by the Advising Bank or entity on behalf of the Beneficiary of the Guarantee. This stage refers to the process of claiming of payment under a Guarantee. Transaction Flow Inward Guarantee Module function TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 113 Lesson 1: Registration The processing of a received Guarantee instruction starts by creating the guarantee record in the system. The following functions may be used for this purpose: Register Inward Guarantee Issue Inward Guarantee Transaction Function Details Inward Guarantee Issuance: Issuing a Guarantee (Two-Step) Register Inward Guarantee Function Description: This function is used to process the registration of the receipt of an incoming Guarantee instruction. Generated Output: SWIFT : None Document : None Voucher : None Gapi : No Related Function Group: IWGT Issue TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 114 Issue Inward Guarantee Function Description: This function is used to continue processing and issue a received Guarantee application. Generated Output: SWIFT : MT768 : MT760 Document : Yes Voucher : Yes Gapi : Yes Related Function Group: IWGT Issue Transaction Processing 1. Run the Register Inward Guarantee function Inward Guarantee > IWGT Issue > Register Inward Guarantee 2. Specify the needed information using the tabs provided and then confirm the transaction. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 115 Inward Guarantee > IWGT Maintenance > Supervisor Release TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 116 . Perform the Supervisor Release on function.3. Generated Output: SWIFT : MT768 : MT767 Document : Yes Voucher : Yes Gapi : No Related Function Group: IWGT Amendment TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 117 . the following functions may be used to perform the amendment: Register Inward Amendment Process MT767 Transaction Function Details Inward Guarantee Amendment: Register Inward Amendemenet Register Inward Amendment Function Description: This function is used to process the inward Guarantee amendment instruction.Lesson 2: Amendment In the event that an amendment instruction on the issued guarantee is received. 3. SWIFT : MT768 : MT767 Document : Yes Voucher : Yes Gapi : No Related Function Group: IWGT Amendment Transaction Processing 1.Process MT767 Function Description: Generated Output: This function is used to process the inward Guarantee amendment instruction that is received through a SWIFT MT767. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 118 . Perform the Supervisor Release function. Run the Inward Guarantee Amendment or Process MT767 (whichever is applicable) function. Specify the needed information using the tabs provided and then confirm the transaction. Inward Guarantee > IWGT Amendment > Process MT767 2. Generated Output: SWIFT : None Document : None Voucher : Yes Gapi : No Related Function Group: TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 119 .Lesson 3: Claim In the event that a Claim against a guarantee is received. Generated Output: SWIFT : None Document : None Voucher : None Gapi :No Related Function Group: IWGT Claims Settle Claim Function Description: This function is used to process the settlement of a registered claim against a guarantee. details of the claim may be processed using the following transaction functions: Register Claim Settle Claim Transaction Function Details Inward Guarantee Amendment: Register Claim Register Claim Function Description: This function is used to register a claim received against a guarantee. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 9: INWARD GUARANTEE 120 . 2. Inward Guarantee > IWGT Claims > Register Claim Specify the needed information using the tabs provided and then confirm the transaction. 3. Run the Register Claim function. 4. Run the Settle Claim function.IWGT Claims Transaction Processing 1. Inward Guarantee > IWGT Claims > Settle Claim Specify the needed information using the tabs provided and then confirm the transaction. Perform the Supervisor Release function. Perform the Supervisor Release function. the request for such transactions should undergo an limits management.SECTION 10: LIMITS MANAGEMENT Expectation At the end of this section. Overview Prior to performing trade transactions that exposes the bank or its customer to financial risks. the learner is expected to know the limits of customer with the use of Eximbills Enterprise. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 10: LIMITS MANAGEMENT 121 . Other information related to the Party Type may also be specified as follows.CustomerID and maturity can be defined. Run the New Approval function. Specify the needed information using the fields provided and then Confirm the transaction. Transaction Function Details 1 Set Global Limits Function Description: Generated Output: This function is used to set a global limit. Where the Party Type. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 10: LIMITS MANAGEMENT 122 .Lesson 1: Set Global Limits A Global Limit will be set for Customers. Banks and Countries which will be common for all Modules. Limits Management > Transaction Menu > Set Global Limits 2. SWIFT : None Document : None Voucher : None Transaction Processing 1. Generated Output: SWIFT : None Document : None Voucher : None Transaction Processing 1. information using the fields provided and then Confirm the transaction. Where the Party Type. The sub limit should be within the global limit and it can be set for particular module. Limits Management > Transaction Menu > Set Sub Limits 2.CustomerID and maturity can be defined.Lesson 2: Set Sub Limits A Sub Limit will be set to Customers. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 10: LIMITS MANAGEMENT 123 . Banks and Countries for which the global limit has been set. Transaction Function Details 1 Set Sub Limits Function Description: This function is used to set a sub limit. Run the New Approval function. Specify the needed Other information related to the Party Type may also be specified as follows. TRANSACTION MANAGEMENT AND MAINTENANCE Serial Number: TMM-00001-EBGH SECTION 10: LIMITS MANAGEMENT 124 .