Banking Back-Office Processing

Trade Finance Administration Guide

Copyright 2001, Unisys Corporation. All rights reserved Unisys is a trademark of Unisys Corporation Release 9.000 June 2004 Printed in the UK 3937 0119-940

The names, places, and/or events used in this publication are not intended to correspond to any individual, group, or association existing, living or otherwise. Any similarity or likeness of the names, places and/or events with the names of any individual, living or otherwise, or that of any group or association is purely coincidental and unintentional. NO WARRANTIES OF ANY NATURE ARE EXTENDED BY THIS DOCUMENT. Any product and related material disclosed herein are only furnished pursuant and subject to the terms and conditions of a duly executed Program Product License or Agreement to purchase or lease equipment. The only warranties made by Unisys, if any, with respect to the products described in this document are set forth in such License or Agreement. Unisys cannot accept any financial or other responsibility that may be the result of your use of the information in this document or software material, including direct, indirect, special or consequential damages. You should be very careful to ensure that the use of this information and/or software material complies with the laws, rules, and regulations of the jurisdictions with respect to which it is used. The information contained herein is subject to change without notice. Revisions may be issued to advise of such changes and/or additions. Correspondence regarding this publication should be forwarded to Unisys Corporation, Bakers Court, Bakers Road, Uxbridge, Middlesex, UB8 1RG, United Kingdom. All registered trademarks are acknowledged.

About This Guide

Purpose
This guide describes the Trade Finance functions offered by the Unisys e-@ction Banking Back-Office Processing product. The information contained in this guide is also available as online help.

Scope
This guide describes all data entry screens for the Trade Finance module. Examples of the screens are shown and instructions on their use are given.

Audience
This guide is intended for personnel preparing information for, and entering data associated with, Trade Finance contracts.

Prerequisites
Anyone using this guide should be familiar with the user documentation and understand the banking terminology associated with Trade Finance. Users of this guide should have read the Starters Guide that provides instruction in the use of the screens.

How To Use This Guide

This guide should be used as a reference tool when preparing information for data entry. Use the guide in conjunction your Guide to Setting Up and Core Functions and Inquiries Guide. Refer to the Core On-Demand Reports Guide for instructions on how to select and run the reports that provide this information.

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About This Guide

About Urbis
The usage of the product name Urbis is due to be phased out as part of the Unisys re-branding exercise. The replacement will be the generic term "Banking Back-Office Processing" solution or "Banking Back-Office" for short. To provide continuity with existing product documentation, the name Urbis is used within this document, but is synonymous with Banking Back-Office Processing.

Organisation
This guide consists of three sections. Section 1. Trade Finance Overview This section describes the type of Trade Finance contracts processed by the Trade Finance module. Section 2. Trade Finance Screens This section describes the screens used to enter Trade Finance contracts. An illustration of each data entry screen is provided with each description. Section 3. Definition of Field Names This section provides definitions of the field names on the Trade Finance data entry screens. The fields are listed alphabetically and details of valid entries are given.

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About This Guide

Related Product Information

Product Overview (3937 0234) This document describes the capabilities and benefits of the modules of the Banking Back-Office Processing system. It consists of an overview of the system, and a description of each of the modules and interfaces available. It is intended for use by senior management. Operations Reference Card (3937 0986) This document is a single card that provides a list of screen names and their mnemonics. The list is organised according to the menu structure of the Graphical User Interface. The card also describes how to log on and off the system, enter data, make inquiries and print reports. These instructions are relevant to the Graphical User Interface only. Starters Guide (3937 0531) This guide describes how to enter data and make online inquiries. It also includes a description and example of commonly used data entry and inquiry screens. This guide is intended for all new and inexperienced personnel who need to enter data and make inquiries. Guide to Setting Up (3937 0945) This guide describes how to set up parameters that govern the operating environment of the system. It describes the procedures for setting up the business and operational tables, and setting up usercodes and access security. The procedures for setting up blueprint parameters are provided with a description of each parameter. It should be used by all persons involved in installation, implementation and maintenance of these system parameters. Core Functions and Inquiries Guide (3937 0952) This guide describes the kernel functions that are used regularly for the maintenance of information utilised by a number of modules. It describes the procedures for setting up and maintaining data, such as market rates and dealers. It also describes inquiries that are common to all contracts. This guide is relevant to all users. Clients and Accounts Administration Guide (3937 0960) This guide describes the data entry and inquiry screens associated with setting up and maintaining client details. This guide also describes the set up and maintenance of client accounts, including automatic payments (standing orders). An appendix covers the calculations used by client accounts. This should be used by personnel preparing information for data entry.

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About This Guide

Settlements Guide (3937 0366) This guide describes the processes associated with settlements and customer transfers. It details how to administer the settlement queues. This guide also describes how to use the Straight Through Processing and Netting functions. It should be used by personnel managing the settlements department. General Ledger Administration Guide (3937 0457) This guide describes the data entry screens associated with General Ledger transactions. This should be used by personnel preparing information for data entry. Risk Management Administration Guide (3937 0358) This guide describes the data entry screens associated with setting up limits and exposures. The guide also describes the screens associated with portfolios. The amounts that represent book and market values are listed by module in an appendix. This guide is intended for personnel preparing information for data entry and those concerned with controlling risk. Commercial Loans Administration Guide (3937 0150) This guide describes the data entry screens associated with Commercial Loan transactions. This includes entry of commitments, various types of drawdown and contract schedules. An appendix gives the calculations used in the processing of Commercial Loan transactions. This guide is intended for personnel preparing information for data entry. Foreign Exchange and Money Market Administration Guide (3937 0135) This guide describes the data entry screens associated with Foreign Exchange and Money Market transactions. An appendix gives the calculations used in the processing of Foreign Exchange and Money Market transactions. This guide is intended for personnel preparing information for data entry. Forward Rate Agreements and Interest Rate Swaps Administration Guide (3937 0168) This guide describes the data entry screens and some related inquiries associated with Forward Rate Agreement and Interest Rate Swaps transactions. An appendix gives the calculations used in the processing of Forward Rate Agreement and Interest Rate Swap transactions. This guide is intended for personnel preparing information for data entry. Futures Administration Guide (3937 0176) This guide describes the data entry screens associated with Futures transactions and some related inquiries. An appendix gives the calculations used in the processing of Futures transactions. This guide is intended for personnel preparing information for data entry.

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About This Guide

Options Administration Guide (3937 0184) This guide describes the data entry screens associated with Options transactions. An appendix gives the calculations used in the processing of Options transactions. This guide is intended for personnel preparing information for data entry. Securities Administration Guide (3937 0341) This guide describes the data entry screens associated with Interest Bearing Securities, Discounted Securities and Repurchase Agreements transactions and some related inquiries. An appendix gives the calculations used in the processing of Securities transactions. This guide is intended for personnel preparing information for data entry. Generalised Fees Administration Guide (3937 0374) This guide describes the data entry screens associated with Fee transactions and supporting business table. This guide is intended for personnel preparing information for data entry. Core On-Demand Reports (3937 0853) This guide describes how to run online reports that are provided in the core of the system and which will be relevant to most implementations of the system. Any options available when producing a report are detailed as well as any specific calculations. On-Demand Reports Guide (3937 0937) This guide describes on-demand reports in alphabetical order. Any options available when producing a report are detailed as well as any specific calculations. Note: core reports are described in the Core On-Demand Reports Guide; retail reports are described in the Retail OnDemand Reports Guide. Overnight Reports (3937 0861) This guide describes how to run offline reports. This includes an overview of overnight processing. Instructions on how to initiate reports are given. This guide should be used by all personnel who need to understand the reports and the overnight process. Data Dictionary (3937 0226) This document provides details of data fields within every dataset on your banking systems database. This document should be used by staff preparing the accounting models and writing SQL reports to inquire on the database.

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About This Guide

Guide to Interfaces with External Systems (3937 0911) This guide describes the running of all the interfaces between your Banking Back-Office system and external systems. This guide is intended for personnel involved in setting up and running external interfaces. Order Transport Management System (3937 1018) This guide describes how to enter stock exchange securities contracts using the Order Transport and Management System. The screens in this guide allow users to add, maintain and inquire on deals, convert deals into stock exchange securities contracts, and liaise with brokers to complete settlement of a deal. This guide is intended for personnel preparing information for data entry. Portfolio Management (3937 1026) This guide describes how to create portfolios for the clients and agents who will be trading stock exchange securities with your institution. A large array of inquiry screens for managing these portfolios is also described. This guide is intended for personnel preparing information for data entry. Stock Exchange and Securities Management (3937 1000) This guide describes how to set up and maintain the securities master file, allowing you to record details of stock exchange securities. This guide also describes how to create, maintain and inquire on contracts based on stock exchange securities, including the necessary static data. Loan Administration System Guide (3937 0994) This guide describes the data entry screens associated with Syndicated Loans. It includes entry of facilities, and contracts such as drawdowns, guarantees and acceptances and their schedules. The screens in this guide allow users to enter data using workflows. This guide is intended for personnel preparing information for data entry. Static Database Reports Guide (3937 0085) This guide provides examples of the master data information used in the establishment and production of the static database. It should be used by persons who are familiarising themselves with the systems functionality. Static Database Transaction Input Guide (3937 0093) This guide, in conjunction with the static database, enables users to evaluate the functions and features of many of the modules. It should be used by persons who are familiarising themselves with the systems functionality.

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Contents
Section 1 Trade Finance Overview
Introduction .............................................................................. Trade Finance Contract Types ............................................... All Trade Finance Contracts ..................................... Trade Finance Letter of Credit .................................. Trade Finance Collection .......................................... Trade Finance Guarantee ........................................ Inquiries .................................................................................... Reports ...................................................................................... Euro Related Information ........................................................ 11 12 12 12 13 13 14 14 14

Section 2

Trade Finance Screens

Introduction .............................................................................. Creating a Trade Finance Contract ........................................ Prerequisites ............................................................................ Trade Finance Default Maintenance (TFDFM) ....................... Trade Finance Letter of Credit Contract Screens ................. Trade Finance Letter of Credit Add (TFLCA) ........... Trade Finance Letter of Credit Change (TFLCC) ..... Trade Finance Letter of Credit Inquire/Delete (TFLCI) ................................................................. Trade Finance Collection Contract Screens ......................... Trade Finance Collection Add (TFCLA) ................... Trade Finance Collection Change (TFCLC) ............. Trade Finance Collection Inquire/Delete (TFCLI) .... Trade Finance Guarantee Contract Screens ......................... Trade Finance Guarantee Add (TFGTA) .................. Trade Finance Guarantee Change (TFGTC) ........... Trade Finance Guarantee Inquire/Delete (TFGTI) ... Trade Finance Schedule Screens .......................................... Trade Finance Schedule (TFSCH) ........................... Trade Finance Schedule Maintenance (TFSCM) ................... Contract Diary Narratives ........................................................ 21 22 22 23 24 24 25 25 26 26 27 27 28 28 29 29 210 210 212 213

Section 3

Definition of Field Names

Introduction .............................................................................. 31

Index .................................................................................................................. Index1

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Figures
21 22 23 24 25 26 27 28 29 210 Flow of Trade Finance Creation Screens ............................................... Trade Finance Default Maintenance screen ........................................... Trade Finance Letter of Credit Add screen ............................................. Trade Finance Letter of Credit Change screen ...................................... Trade Finance Collection Add screen ..................................................... Trade Finance Collection Change screen .............................................. Trade Finance Guarantee Add screen ................................................... Trade Finance Guarantee Change screen ............................................. Trade Finance Schedule screen ............................................................. Trade Finance Schedule Maintenance screen ....................................... 22 23 24 25 26 27 28 29 211 212

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Figures

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Tables
31 Definition of Field Names ........................................................................ 31

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Section 1 Trade Finance Overview

Introduction
The Trade Finance module provides the following general functions: Entry of Trade Finance contracts using the screens defined in Section 2, Trade Finance Screens Creation of accounting entries against Client and General Ledger accounts Update of client exposures for contracts entered Displaying details of contracts on consolidated reports and inquiries

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Trade Finance Overview

Trade Finance Contract Types

The Trade Finance module processes transactions involving the exchange of goods for documents, which can then be presented to the bank for payment. The Bank can guarantee payment for either party in the exchange and may also be responsible for collecting payment on behalf of the exporter. The following types of trade finance contract are processed: Letters of Credit Collections Guarantees

All Trade Finance Contracts

Trade Finance data entered enables the system to reflect the bank's position with regard to exposures, and to provide consolidated reporting of all bank transactions including client/currency risk. Input and Maturity Diaries are created automatically when the contract is entered. Additional diaries can be created using the Trade Finance Schedule (TFSCH) screen and diaries can be amended using the Trade Finance Schedule Maintenance (TFSCM) screen. Exposure and diary details for all contracts are updated online to ensure that reports and inquiries accurately reflect the bank's current position. For euro conversion details, see Euro Related Information in the Core Functions and Inquiries Guide.

Trade Finance Letter of Credit

Both Import and Export Letters of Credit where goods are exchanged for documents representing payment are processed. If your bank is acting on behalf of the importer, exposures will be updated in real time after you enter the transaction. If your bank is acting on behalf of the exporter, your exposure is not affected. Diaries are also updated after you enter the transaction. The Letter of Credit can be related to other transactions, which are processed by the relevant module, for example, you can enter the contract number relating to a bill of exchange that may have been discounted on the contract entry screen. See the Securities Administration Guide for details of how to enter bills. The credit amount can be specified in any currency set up in the system.

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Trade Finance Overview

Trade Finance Collection

Where goods are subject to collection, the system processes both the inward and outward collection contracts. You can record the advance made on a particular contract where applicable. The Inward/Outward field identifies whether you are acting as the remitting bank, or the collecting bank, receiving documents and instructions from banks abroad and collecting money from importers on their behalf. The collection can be documentary and/or related to a bill that can be accepted by the importer for payment to the exporter at maturity (settlement). A bill can be discounted if the exporter requires some payment before contract maturity. A collection may be entered in any currency set up in the system.

Trade Finance Guarantee

Different types of guarantee contract whereby the bank takes on responsibility for ensuring that payments made are processed. Trade Finance Guarantees can be drawn in favour of a domestic or a foreign client. For each guarantee you can record details of your client, the client in whose favour the guarantee is drawn and the bank acting on behalf of the other client. The guarantee amount may be given in any currency specified in the system.

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Trade Finance Overview

Inquiries
The following inquiries display data entered on the Trade Finance screens: Client Contract Summary (CNINQ) Diary By Contract Number (DICNI) Diary Narratives By Contract (DNCIQ) Diary Narratives By Accounting Centre (DNBIQ)

For further information on these inquiries see the Core Functions and Inquiries Guide.

Reports
Details of Trade Finance transactions entered in an external Trade Finance system are available in the following reports: ACMDLAUD - Accounting Models Audit CNTRCTDET - Contract Details CLINMDTL - Client Details CNTRCTLST - Outstanding Contracts List DEALSHEET - Dealing Sheet DIARYLST - Diary Events Due

For further information on these reports see the On-Demand Reports Guide.

Euro Related Information

Economic and Monetary Union (EMU) is a process by which certain countries in the European Union are converting their national currencies (also called in currencies) into a single European currency called the Euro. The system supports this conversion process fully for all currencies and all phases of the conversion (see "Euro Related Information" in the Core Functions and Inquiries Guide for more information).

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Section 2 Trade Finance Screens

Introduction
This section provides a description of the screens used to enter Trade Finance contracts. For each screen the following is provided: An example of the screen A description of its use

A full description of the fields on the screens, and valid entries, is given in Section 3, Definition of Field Names. The following screens are described: Trade Finance Defaults Maintenance (TFDFM) Trade Finance Letter of Credit (TFLCA/C/I) Trade Finance Collection (TFCLA/C/I) Trade Finance Guarantee (TFGTA/C/I) Trade Finance Schedule (TFSCH) Trade Finance Schedule Maintenance (TFSCM) Contract Diary Narratives (CNARA/M)

For a description of how to access and use screens see the Starters Guide.

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Trade Finance Screens

Creating a Trade Finance Contract

A trade finance contract is created by completing the appropriate screen. The trade finance contract creation process is illustrated in the following flow.

Set up the defaults for trade finance contracts

Trade Finance Defaults Maintenance (TFDFM)

Contract Diary Narrative - Add (CNARA)

If required, enter diary events for any individual trade finance contract

Add details of relevant trade finance contract

Trade Finance Collection Add (TFCLA)

Trade Finance Letter of Credit - Add (TFLCA)

Trade Finance Guarantee Add (TFGTA)

Add details of schedule events for contracts

Trade Finance Schedule (TFSCH)

Trade Finance Schedule (TFSCH)

Trade Finance Schedule (TFSCH)

Figure 21. Flow of Trade Finance Creation Screens Note: Screens are available that allow you to change, delete and inquire on trade finance contracts and their schedules.

Prerequisites
Before you can enter a Trade Finance contract, certain items referenced by the contract must be set up. The following list shows the mandatory items and the business tables on which they are set up: Accounting Centre - Accounting Centres Maintenance (ACNTM), see the Guide to Setting Up Portfolio - Portfolio Definition (PFDFM), see the Risk Management Administration Guide Product Type - Product Types Maintenance (PRTPM), see the Core Functions and Inquiries Guide Principal Currency - Currencies (CCYS), see the Guide to Setting Up General Ledger Master - General Ledger Master (GLMAM), see the General Ledger Administration Guide Dealer - Dealers and Officers (DEALR), see the Core Functions and Inquiries Guide. Client - Client Details - Banking (CIWSL), see the Clients and Accounts Administration Guide.

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Trade Finance Screens

Trade Finance Default Maintenance (TFDFM)

Use this screen to set up default details for a Trade Finance product type. The defaults that you enter here can be recalled on contract deal entry screens as follows: On the blank deal entry screen, enter Product Type and click Add

On the blank deal entry screen, enter Product Type and press Transmit The availability of defaults for a product saves key strokes when entering a deal and helps to standardise details across deals involving the same product. Defaults include currency, guarantee, letter of credit and collection details. Any of the defaults recalled onto a contract entry screen may be overwritten. The defaults that you set up on the Trade Finance Default Maintenance (TFDFM) screen are associated with a Product Type. Product Types are defined on the Product Types Maintenance (PRTPM) screen, see the Core Functions and Inquiries Guide for more information. The following figure shows an example of the Trade Finance Default Maintenance screen.

Figure 22. Trade Finance Default Maintenance screen

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Trade Finance Screens

Trade Finance Letter of Credit Contract Screens

The following screens are used to define and maintain trade finance contracts for both import and export Letters of Credit. Trade Finance Letter of Credit - Add (TFLCA) Trade Finance Letter of Credit - Change (TFLCC) Trade Finance Letter of Credit - Inquire/Delete (TFLCI)

For general information on trade finance contracts and letters of credit, see All Trade Finance Contracts and Trade Finance Letter of Credit in Section 1.

Trade Finance Letter of Credit Add (TFLCA)

The Trade Finance Letter of Credit Add (TFLCA) screen can be used to define trade finance contracts for import or export letters of credit. The "Trade Side" field identifies whether your client is importing or exporting goods. If your client is importing goods, the system will update exposures as soon as you have entered details of the deal. Exposures are not affected by export Letters of Credit. The following figure shows an example of the Trade Finance Letter of Credit Add screen.

Figure 23. Trade Finance Letter of Credit Add screen

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Trade Finance Screens

Trade Finance Letter of Credit Change (TFLCC)

The Trade Finance Letter of Credit Change (TFLCC) screen can be used to change details of trade finance contracts for import or export letters of credit at any point before the contract expires. However, it cannot be used to change the loan principal or the terms of the letter of credit. Changes to these details can only be effected by scheduling an event using the Trade Finance Schedule (TFSCH) screen. You can also use the Trade Finance Letter of Credit Change (TFLCC) screen to initiate conversion of an in (national) currency contract to euro. (See Euro Related Information in the Core Functions and Inquiries Guide.) The following figure shows an example of the Trade Finance Letter of Credit Change screen.

Figure 24. Trade Finance Letter of Credit Change screen

Trade Finance Letter of Credit Inquire/Delete (TFLCI)

The Trade Finance Letter of Credit Inquire/Delete (TFLCI) screen can be used to perform an inquiry on any trade finance contract for a letter of credit. After performing an inquiry on a contract you can delete it. If the contract has expired, then it cannot be deleted unless the blueprint parameter BP-CNT-MATDEL-DYS (see the Guide to Setting Up) has been used to specify that matured contracts can be deleted. Using the blueprint parameter you specify the period after maturity during which a contract may be deleted. The Trade Finance Letter of Credit Inquire/Delete (TFLCI) screen has the same layout as the Trade Finance Letter of Credit Change (TFLCC) screen.

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Trade Finance Screens

Trade Finance Collection Contract Screens

The following screens are used to define and maintain trade finance contracts for both import and export collections. Trade Finance Collection - Add (TFCLA) Trade Finance Collection - Change (TFCLC) Trade Finance Collection - Inquire/Delete (TFCLI)

For general information on trade finance contracts and collections, see All Trade Finance Contracts and Trade Finance Collection in Section 1.

Trade Finance Collection Add (TFCLA)

The Trade Finance Collection Add (TFCLA) screen can be used to define trade finance contracts for import or export collections. The "Direction" field identifies whether you are acting as the remitting bank, sending documents abroad and obtaining payment through agents, or whether you are acting as the collecting bank, receiving documents and instructions and collecting payment from the importing client. The following figure shows an example of the Trade Finance Collection Add screen.

Figure 25. Trade Finance Collection Add screen

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Trade Finance Collection Change (TFCLC)

The Trade Finance Collection Change (TFCLC) screen can be used to change details of trade finance contracts for import or export collections at any point before the contract matures. However, it cannot be used to change the loan principal. Changes to the loan principal can only be effected by scheduling an event using the Trade Finance Schedule (TFSCH) screen. You can also use the Trade Finance Collection Change (TFCLC) screen to initiate conversion of an in (national) currency contract to euro. (See Euro Related Information in the Core Functions and Inquiries Guide.) The following figure shows an example of the Trade Finance Collection Change screen.

Figure 26. Trade Finance Collection Change screen

Trade Finance Collection Inquire/Delete (TFCLI)

The Trade Finance Collection Inquire/Delete (TFCLI) screen can be used to perform an inquiry on any trade finance contract for a collection. After performing an inquiry on a contract you can delete it. If the contract has matured, then it cannot be deleted unless the blueprint parameter BPCNT-MATDEL-DYS (see the Guide to Setting Up) has been used to specify that matured contracts can be deleted. Using the blueprint parameter you specify the period after maturity during which a contract may be deleted. The Trade Finance Collection Inquire/Delete (TFCLI) screen has the same layout as the Trade Finance Collection Change (TFCLC) screen.

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Trade Finance Screens

Trade Finance Guarantee Contract Screens

The following screens are used to define and maintain trade finance guarantee contracts. Trade Finance Guarantee - Add (TFGTA) Trade Finance Guarantee - Change (TFGTC) Trade Finance Guarantee - Inquire/Delete (TFGTI)

For general information on trade finance contracts and collections, see All Trade Finance Contracts and Trade Finance Guarantee in Section 1.

Trade Finance Guarantee Add (TFGTA)

The Trade Finance Guarantee Add (TFGTA) screen can be used to define trade finance guarantee contracts. The "Client Locality" field is used to identify whether the guarantee is being drawn in favour of an overseas or domestic client. Exposures for a guarantee are updated by the amount being guaranteed on successful deal entry. See the Risk Management Administration Guide for information about exposures. The following figure shows an example of the Trade Finance Guarantee Add screen.

Figure 27. Trade Finance Guarantee Add screen

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Trade Finance Guarantee Change (TFGTC)

The Trade Finance Guarantee Change (TFGTC) screen can be used to change details of trade finance contracts for guarantees at any point before the contract expires. However, it cannot be used to change the loan principal. Changes to the loan principal can only be effected by scheduling an event using the Trade Finance Schedule (TFSCH) screen. You can also use the Trade Finance Guarantee Change (TFGTC) screen to initiate conversion of an in (national) currency contract to euro. (See Euro Related Information in the Core Functions and Inquiries Guide.) The following figure shows an example of the Trade Finance Guarantee Change screen.

Figure 28. Trade Finance Guarantee Change screen

Trade Finance Guarantee Inquire/Delete (TFGTI)

The Trade Finance Guarantee Inquire/Delete (TFGTI) screen can be used to perform an inquiry on any trade finance contract for a guarantee. After performing an inquiry on a contract you can delete it. If the contract has expired, then it cannot be deleted unless the blueprint parameter BP-CNT-MATDEL-DYS (see the Guide to Setting Up) has been used to specify that matured contracts can be deleted. Using the blueprint parameter you specify the period after maturity during which a contract may be deleted. The Trade Finance Guarantee Inquire/Delete (TFGTI) screen has the same layout as the Trade Finance Guarantee Change (TFGTC) screen.

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Trade Finance Screens

Trade Finance Schedule Screens

Once a trade finance contract has been defined, using the Trade Finance Letter of Credit Add (TFLCA), Trade Finance Collection Add (TFCLA), or Trade Finance Guarantee Add (TFGTA) screen, it may become necessary to make changes to the schedule associated with the contract. The following screens are used for this purpose. Trade Finance Schedule (TFSCH) Trade Finance Schedule Maintenance (TFSCM)

Trade Finance Schedule (TFSCH)

Whenever a Trade Finance contract is entered, input and maturity diary events are automatically created. The Trade Finance Schedule (TFSCH) screen is used to set up and inquire on Schedule Events. Each contract can have any number of associated schedule events. All schedule events are validated as business days; the entry of a date that falls on a weekend or a public holiday generates an error message. Using the "Holiday Override" mechanism on the contract entry screen, however, enables you to enter a non-business day in any of the date fields. Schedule events can only be amended using the Trade Finance Schedule Maintenance (TFSCM) screen that is described later in this section. All fields are displayed when entering a Trade Finance Schedule unless otherwise indicated. You cannot leave the first line blank. When you perform an inquiry using the Trade Finance Schedule screen, the screen displays details for all diary events that have been entered for the selected contract. In addition to the fields available for data entry, the following fields are displayed: Original Principal This shows the amount of the principal when the deal was input Principal Amount This shows the amount of the principal once the diary event displayed has come to value. Maturity Value This shows the value of the contract at maturity

This additional information enables you to track the effects of the diary events on the amount of the principal. Note: The Principal Amount field is not displayed until you perform an inquiry.

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The following figure shows an example of the Trade Finance Schedule screen.

Figure 29. Trade Finance Schedule screen

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Trade Finance Schedule Maintenance (TFSCM)

The Trade Finance Schedule Maintenance (TFSCM) screen is used to add, amend or delete a scheduled event. A scheduled event can be changed or deleted if its value date has not been reached. Note: If the value date of a contract diary event has been reached, then it cannot be updated or deleted unless blueprint parameter BP-BACK-VAL-DT (see the Guide to Setting Up) has been used to specify that actioned events can be updated or deleted. Using this parameter you specify the period after the value date during which an event may be updated or deleted.

Each contract can have any number of associated scheduled events, but you can only change or delete one scheduled event at a time. The following figure shows an example of the Trade Finance Schedule Maintenance screen.

Figure 210. Trade Finance Schedule Maintenance screen

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Contract Diary Narratives

Each diary event associated with a trade finance contract is processed automatically, on the basis of the details entered in the contract screens. However, it may be necessary to enter additional diary narratives, for example you may wish the system to provide a message prompting you to take action the day before a maturity event. These contract diary narratives can be set up and maintained using the standard contract screens: Contract Diary Narrative Add (CNARA) Contract Diary Narrative Maintain (CNARM)

These diary narratives can be seen on the inquiry screens Diary Narratives By Accounting Centre (DNBIQ) and Diary Narratives By Contract (DNCIQ) (see the Core Functions and Inquiries Guide for full details of the Diary Narrative screens). Each contract can have any number of associated narrative events. Each narrative event is identified by its value date and sequence number. This means that more than one narrative event can take place on the same value date. Using the Contract Diary Narrative Add (CNARA) screen you can add a number of narrative events for a contract. Individual narrative events can then be updated or deleted using the Contract Diary Narrative Maintain (CNARM) screen.

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Trade Finance Screens

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Section 3 Definition of Field Names

Introduction
This section provides a definition of all the field names on trade finance data entry screens. The fields are listed alphabetically and details of valid entries are given. If the field is prefilled with a value on the screen, or defaults to a value if left blank, these values are also given. Many of the codes and mnemonics given in this section may be changed when the system is installed at your bank. Table 31. Definition of Field Names

Field Accepted

Definition This indicates whether or not the bill has been accepted: On Off Accepted Not accepted (this is the default) Accepted Not accepted (this is the default)

T
Accounting Centre

Y N

This is the identifier of the Accounting Centre associated with the contract. It is set up on the Accounting Centres Maintenance (ACNTM) screen. All Accounting Centres are linked to a location maintained using the Location Maintenance (LOCTM) screen. On contract add screens, this field is prefilled with the Accounting Centre associated with your usercode on the Users Maintenance (USERS) screen.

Advance

The number of the contract or account that is used to fund the advance that has already been made to the exporter.

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Definition of Field Names

Field Available By

Definition This indicates the terms of the Letter of Credit: Payment Acceptance Negotiation Deferred

P A N D

Payment Acceptance Negotiation Deferred

Bank Portfolio

The Bank Portfolio is used to hold the Banks principal positions. This field shows the identifier of the Bank Portfolio to which this deal belongs. The identifier is defined on the Portfolio Definition (PFDFM) screen. On contract add screens, this field is pre-filled with the Portfolio associated with your usercode on the Users Maintenance (USERS) screen.

Bankers

The shortname/city combination identifying the banker acting for the client in whose favour the guarantee is being drawn. These combinations are set up on the Client Details - Banking (CIWSL) screen.

Bill Maturity

The date of payment of a term bill. For a sight bill this field is left blank. It can be filled in subsequently, when the maturity date is known.

Bill Tenor Charges Taken

A free format narrative field that can be used to record details relating to the terms of the bill. Indicates whether charges have been paid to the bank: On Off Charges paid Charges have not been paid Charges paid Charges have not been paid

Y N

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Definition of Field Names

Field Client City

Definition The mnemonic of the client's city of residence. In addition, for Letters of Credit and Collections: 1. 2. The city of residence for the overseas client. The mnemonic of the city where the overseas bank is based.

In addition, for Guarantees: 1. 2. The mnemonic of the city of residence of the client in whose favour the guarantee is drawn. The mnemonic of the city in which the bank acting for the client is based.

Client City mnemonics are set up on the General Purpose Narratives Table (GNARR), table type CI. Client Locality One of the following indicates whether the guarantee is being drawn in favour of an overseas (Foreign) or Domestic client. Foreign Domestic

T
Client Shortname

F D

Foreign Domestic

The shortname of the client with whom a counterparty trade finance deal is struck. These shortnames are set up on the Client Details - Banking (CIWSL) screen. This indicates whether the bank has received cash collateral for the Letter of Credit: No Cover Cover No cash collateral (this is the default) Cash collateral

Collateral

T
Collection Reference Number Confirmation

N C

No cash collateral (this is the default) Cash collateral

The reference number of the collection document, allocated by the Trade Finance department. Indicates whether a confirmation has been received by the counterparty: On Off Confirmation received Confirmation not received Confirmation received Confirmation not received

T
Contract Number

Y N

The unique reference number that identifies the trade finance contract. This is automatically allocated by the system when you add a new contract, but must be input for all other actions.

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Definition of Field Names

Field Currency Currency Conversion Indicator

Definition The mnemonic of the currency of the guarantee. Currency mnemonics are defined on the Currencies (CCYS) table. Use this field to indicate whether a contract in an in currency should be converted to euro during the next overnight process. If the contract is already in euro, then use this field to indicate that the contract is to be reconverted from euro to its original currency. On Off Conversion required Conversion not required Conversion required Conversion not required

T
Dealer Identifier Diary Type

Y N

The identifier of the officer responsible for the contract. These identifiers are set up on the Dealers and Officers table (DEALR). This indicates the diary event type: Commission Rate/Principal Change

T
Direction

CM RP

Commission Rate/Principal change

This indicates whether you are acting as the remitting bank (Outward) or the collecting bank (Inward). Inward Outward

T
Discount Bill Number Expiry Date

I O

Inward Outward

The contract number of the bill of exchange that has been discounted by the bank. For Letters of Credit this is the date by which all documents relating to the Letter of Credit must be presented for payment, acceptance or negotiation. For Guarantees this is the date on which the guarantee expires.

Favour Of

The identifier of the client in whose favour the guarantee is being drawn. Client Identifiers for non-retail clients are set up on the Client Details - Banking (CIWSL) screen. The number of the General Ledger Master to which the contract is linked. This identifies the General Ledger category. It is defaulted from the Default General Ledger Maintenance table (GLDFM).

GL Master Number

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Definition of Field Names

Field Guarantee Type

Definition One of the following must be selected, indicating the type of contract being underwritten: Tender Performance Advance Payments Progress Payments Retention of Monies Overdraft

TE PF AP PP RM OD

Tender Performance Advance Payments Progress Payments Retention of Monies Overdraft

Holiday Override

This comprises two fields. The first indicates whether an event on the contract can occur on a holiday: On Off Yes, events can occur on holidays No, events cannot occur on holidays Yes, events can occur on holidays No, events cannot occur on holidays

Y N

The second field contains a value defined on the Country Check Codes table (CNCHK) representing the currencies to be checked for holidays for each contract event. Latest Ship Date Letter of Credit Reference Number Letter Recovery The date by which the goods must be shipped to the importer. The reference number allocated to the Letter of Credit by the Trade Finance department. Indicates whether the Letter of Credit is Revocable or Irrevocable (this is the default). Revocable Irrevocable

T
Market Rate

R I

Revocable Irrevocable

Enter the current Market Rate applicable for the contract. By default this field displays the rate set up for the product on the Trade Finance Default Maintenance (TFDFM) screen. The value of the contract at maturity. This field is only displayed if you are making an inquiry.

Maturity Value

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Definition of Field Names

Field Message Priority

Definition Unless your version of the system is set up to support S.W.I.F.T. payment / confirmation messages, this is a documentary field only. Otherwise, it identifies one of the following standard S.W.I.F.T. message priority codes: 01 - Urgent U1003 Equivalent to S.W.I.F.T. message U1003 (Urgent); a Non-Delivery Warning is reported if the message has not been received within 15 minutes. 02- Normal N2020 Equivalent to S.W.I.F.T. message N2020 (Normal); Delivery Notification is reported if the message has been received within 100 minutes. 11 - Urgent U3003 Equivalent to S.W.I.F.T. message U3003 (Urgent); a Non-Delivery Warning is reported if the message has not been received within 15 minutes and Delivery Notification is reported if the message has been received within 15 minutes. 99 - None Indicates that, even if the client has a S.W.I.F.T. address, settlement instructions must be suppressed. This facility can be used for internal deals that do not require settlement instructions.

Original Guarantee Amount Original Principal Overseas Bank

The original amount of the guarantee. Once entered, this amount cannot be changed using the change screen. The original value of the contract. This field is only displayed if you are making an inquiry. The entry you make in this field depends on whether the deal entered is an import or export letter of credit:

If the deal is for an import letter of credit, then this field identifies the remitting bank. The exporter is entered in the Overseas Customer field. In this scenario, your institution acts as the issuing bank. If the deal is for an export letter of credit, then this field identifies the issuing bank. The importer is entered in the Overseas Customer field. In this scenario, your institution acts as the remitting bank.

The bank that you enter in this field must exist as a client in the system (see the Clients and Accounts Administration Guide for details).

36

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Definition of Field Names

Field Overseas Customer

Definition The entry you make in this field depends on whether the deal entered is an import or export letter of credit:

If the deal is for an import letter of credit, then this field identifies the exporter. The remitting bank is entered in the Overseas Bank field. In this scenario, your institution acts as the issuing bank. If the deal is for an export letter of credit, then this field identifies the importer. The issuing bank is entered in the Overseas Bank field. In this scenario, your institution acts as the remitting bank.

The customer that you enter in this field must exist as a client in the system (see the Clients and Accounts Administration Guide for details). Principal Amount The principal amount of the contract. This field is mandatory. For Collections, this is the amount that the importer is to pay for the goods. For Guarantees, this is the amount being guaranteed. For schedules, this is the amount of the principal after the diary event displayed has come to value. This field is only displayed if you are making an inquiry. Principal Change Principal Currency Enter the amount by which the principal has been repaid or extended. The mnemonic of the currency of the contract. Currency mnemonics are set up on the Currencies Table (CCYS). This field is mandatory. This identifies the product being traded for this contract. For example, Letters of Credit and Foreign Guarantees. Product definitions are held on the Product Types Maintenance table (PRTPM). Release of Goods This indicates whether or not the goods have been released: On Off Goods have been released Not released Goods have been released Not released

Product Type

T
Result of Change

Y N

Indicates whether the principal entered in the "Principal Change" field is being repaid or extended. Repay Extend

T
Start Date

R E

Repay Extend

The date on which the guarantee takes effect.

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Definition of Field Names

Field Status

Definition This indicates the status of the contract: Active Deleted Matured Unstarted

A D M U

Active Deleted Matured Unstarted

Tender Number Tender/Value Percentage Trade Side

The reference number of the guarantee document, allocated by the Trade Finance department. The amount that is to be guaranteed. This can be an amount or a percentage of the principal. An entry in this field is mandatory. Indicates whether you are acting on behalf of the Import or Export side of the deal. Import Export

T
Value Date

I E

Import Export

The date on which the scheduled event is due to take place. Events must be entered in ascending date order. The date entered must have already been defined as a business day in the countries involved in the contract, unless you have already selected the Holiday Override option on the contract entry screen.

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Index
C
Collections, overview of, 1-3 Contract Diary Narratives, 2-13

S
Schedule Events Adding, 2-10 Amending, 2-12

D
Definition of field names, 3-1 to 3-8

T
TFCLA screen, 2-6 TFCLC screen, 2-7 TFCLI screen, 2-7 TFDFM screen, 2-3 TFGTA screen, 2-8 TFGTC screen, 2-9 TFGTI screen, 2-9 TFLCA screen, 2-4 TFLCC screen, 2-5 TFLCI screen, 2-5 TFSCH screen, 2-10 to 2-11 TFSCM screen, 2-12 Trade Finance Collections, 1-3 Contract types, 1-2 Guarantees, 1-3 Inquiries, 1-4 Introduction to, 1-1 Letters of Credit, 1-2 List of screens, 2-1 Main functions, 1-1 Reports, 1-4 Trade Finance Collection Add screen Description of, 2-6 Example of, 2-6 Trade Finance Collection Change screen Description of, 2-7 Example of, 2-7 Trade Finance Collection Inquire/Delete screen Description of, 2-7 Trade Finance Contract Creation, 2-2 Trade Finance Default Maintenance screen Description of, 2-3 Example of, 2-3

E
Euro Related Information, 1-4

G
Guarantees, overview of, 1-3

I
Inquiries, 1-4

L
Letters of Credit, overview of, 1-2

P
Prerequisites Trade Finance contract entry, 2-2

R
Reports, 1-4

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Index-1

Index

Trade Finance Guarantee Add screen Description of, 2-8 Example of, 2-8 Trade Finance Guarantee Change screen Description of, 2-9 Example of, 2-9 Trade Finance Guarantee Inquire/Delete screen Description of, 2-9 Trade Finance Letter of Credit Add screen Description of, 2-4 Example of, 2-4 Trade Finance Letter of Credit Change screen Description of, 2-5 Example of, 2-5 Trade Finance Letter of Credit Inquire/Delete screen Description of, 2-5 Trade Finance Schedule Maint. screen Description of, 2-12 Example of, 2-12 Trade Finance Schedule screen Description of, 2-10 Example of, 2-11

Index-2

3937 0119-940