The “Export L/C” business sector covers all transactions directly connected to the processing of export L/Cs. This includes generating subordinate contracts such as “Export L/C Document Set”, etc.

For each document presentation under an Export L/C, a subordinate contract is created under that letter of credit. It is created using the “Advising Documents” (LETDAV) or “Receiving Documents” (LETDRV) transaction. Transactions for processing document sets such as Settling a Document Value are handled under the subordinate sector “Document Sets under an Export L/C” (BE).

Besides “Export L/C Document Set” (BEs), other subordinate types of contracts are Advance, Transfer under Export L/C and Export L/C Transfer Document Set. These latter three contracts are distinct business sectors which need to be purchased and installed separately.

For documents submitted as part of the export L/C, the transaction establishes a so-called sub-contract for each document record. This sub-contract has its own reference number (made up of the reference number for the export L/C together with a counter). Such sub-contracts are called “Documents Received” in the application and are abbreviated as BE in the export L/C sector.

All transactions affecting a document set are processed as part of the relevant sub-contract. In a document set, transactions can only then be carried out when the corresponding BE has automatically been added by the Documents Received procedure.

The export L/C first has to be accessed before working on transactions that affect it. If the Documents Received procedure has already been run and if relevant BEs are already available, the user will receive a selection list of these. After selecting a document record, a list of pertinent transactions are displayed from which the user can make his selection for processing.

The organization of this process makes particular sense because diverse single submissions of documents can take place in an export L/C. This division of the work allows each individual submission to be processed easily. The application calculates the total of all submissions against the original amount of the export L/C.

The business sector “Export L/C” (LE) is used to advise received letter of credits to the beneficiary of the L/C with or without confirmation. In the case of a confirmation of the L/C or a silent confirmation, this represents an independent liability on behalf of the confirming bank.

Within confirmations a distinction is made between the confirmed amount (within the contract) and the resultant liability. Confirmations always use either the maximum amount or a percentage of this maximum amount. Thus, the confirmation amount will NOT be changed after utilization.

The liability that is originally based on the confirmation amount will be reduced. In doing so, the amount to be booked out can freely be divided into the available liability types. The application keeps in mind whether the amount or the percentage has been confirmed and automatically adjusts the confirmation in the “Advise an Amendment” (LETAME) transaction.

The confirmation fields described below are to be filled in in “Advising / Confirming” (LETOPN), for example.

The field “Confirmation Instruct. Received” shows the confirmation instructions received from the issuing bank or from the “1st Advising Bank”. The field “Confirmed by us” displays the current status of the confirmation, whereupon the internal bookings are carried out. It shows whether a confirmation is at hand or not. If a silent confirmation is at hand (which is not to be announced to other parties), this status will also be displayed via this field.

The field “Confirmation from 1st Adv. Bank” shows whether the 1st advising bank has already given its confirmation to the L/C. It has only to be filled in if a 1st advising bank has been defined in the contract.

Amendments are edited in “Advise an Amendment” (LETAME).If an amendment request is to be sent to one of the parties in advance, this is sent using the “Request of Amendment” (LETRAM) transactionn. Amendments captured here are saved in an auto-registration for the amendment. If the amendment is to be finalized, the autoregistration is retrieved and the “Amend” transaction is saved. If a limit check is to be performed before the change, this is done using the “Liability Approval for Amendment” (LETAMR).

If an incoming message containing an amendment request (e.g. SWIFT MT707) is picked up, the corresponding free text contained in the transaction is copied to the “CONTAG79” field. The text is not changed and remains the same as the text in the incoming message.

The “Narrative” (NARTXT) field compiles the changes that will comprise the outgoing message. The contents of CONTAG79 form the basis for this field and this text can be edited for the outgoing message. In particular, changes made to long text fields (e.g. descriptions of goods) are normally made in CONTAG79. To facilitate this, the application provides text fields to allow amendments to be assigned to the relevant original texts.

The NARTXT together with the changes entered in the individual text fields listed consecutively are issued in a :79. Thus changes made to texts, such as to the description of goods, are either found in NARTXT or in the “amended description of goods” field - not both - to prevent them appearing twice in the outgoing message.