940 trade finance-main

8/3/2019 940 Trade Finance-main

1/42

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


2/42


3/42

3937 0119-940 iii

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.

ScopeThis 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.

PrerequisitesAnyone 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 yourGuide 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.


4/42

About This Guide

iv 3937 0119-940

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, thename 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.


5/42

About This Guide

3937 0119-940 v

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 clientaccounts. This should be used by personnel preparing information for data entry.


6/42

About This Guide

vi 3937 0119-940

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 Markettransactions. 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


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.


7/42

About This Guide

3937 0119-940 vii

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


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 On-Demand 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 writingSQL reports to inquire on the database.


8/42

About This Guide

viii 3937 0119-940

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 theseportfolios 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 offacilities, 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.


9/42

3937 0119-940 ix

Contents

Section 1 Trade Finance Overview

Introduction .............................................................................. 11

Trade Finance Contract Types ............................................... 12

All Trade Finance Contracts ..................................... 12

Trade Finance Letter of Credit .................................. 12

Trade Finance Collection .......................................... 13

Trade Finance Guarantee ........................................ 13

Inquiries .................................................................................... 14

Reports ...................................................................................... 14Euro Related Information ........................................................ 14

Section 2 Trade Finance Screens

Introduction .............................................................................. 21

Creating a Trade Finance Contract ........................................ 22

Prerequisites ............................................................................ 22

Trade Finance Default Maintenance (TFDFM) ....................... 23

Trade Finance Letter of Credit Contract Screens ................. 24

Trade Finance Letter of Credit Add (TFLCA) ........... 24

Trade Finance Letter of Credit Change (TFLCC) ..... 25

Trade Finance Letter of Credit Inquire/Delete

(TFLCI) ................................................................. 25Trade Finance Collection Contract Screens ......................... 26

Trade Finance Collection Add (TFCLA) ................... 26

Trade Finance Collection Change (TFCLC) ............. 27

Trade Finance Collection Inquire/Delete (TFCLI) .... 27

Trade Finance Guarantee Contract Screens ......................... 28

Trade Finance Guarantee Add (TFGTA) .................. 28

Trade Finance Guarantee Change (TFGTC) ........... 29

Trade Finance Guarantee Inquire/Delete (TFGTI) ... 29

Trade Finance Schedule Screens .......................................... 210

Trade Finance Schedule (TFSCH) ........................... 210

Trade Finance Schedule Maintenance (TFSCM) ................... 212

Contract Diary Narratives ........................................................ 213

Section 3 Definition of Field Names

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

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


10/42

Contents

x 3937 0119-940


11/42

3937 0119-940 xi

Figures

21 Flow of Trade Finance Creation Screens ............................................... 22

22 Trade Finance Default Maintenance screen ........................................... 23

23 Trade Finance Letter of Credit Add screen ............................................. 24

24 Trade Finance Letter of Credit Change screen ...................................... 25

25 Trade Finance Collection Add screen ..................................................... 26

26 Trade Finance Collection Change screen .............................................. 27

27 Trade Finance Guarantee Add screen ................................................... 28

28 Trade Finance Guarantee Change screen ............................................. 29

29 Trade Finance Schedule screen ............................................................. 211

210 Trade Finance Schedule Maintenance screen ....................................... 212


12/42

Figures

xii 3937 0119-940


13/42

3937 0119-940 xiii

Tables

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


14/42

Tables

xiv 3937 0119-940


15/42

3937 0119-940 11

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


16/42


12 3937 0119-940

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 includingclient/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.


17/42


3937 0119-940 13

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 thecollecting 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.


18/42


14 3937 0119-940

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 InformationEconomic 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).


19/42

3937 0119-940 21

Section 2Trade 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, Definitionof 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.


20/42

Trade Finance Screens

22 3937 0119-940

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.

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 theRisk 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.

Set up the defaults

for trade finance

contracts

Add details of relevanttrade finance contract

(TFDFM)

Trade Finance

Defaults

Maintenance

(CNARA)

Contract Diary

Narrative - Add

If required, enter diary eventsfor any individual trade

finance contract

Add details of scheduleevents for contracts

Trade Finance

Letter of

Credit - Add

(TFLCA)

Trade FinanceSchedule(TFSCH)

Trade Finance

Collection

Add

(TFCLA)


Trade Finance

Guarantee

Add

(TFGTA)



21/42


3937 0119-940 23

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 clickAdd

T 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


22/42


24 3937 0119-940

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


23/42


3937 0119-940 25

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 TradeFinance 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 acontract 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.


24/42


26 3937 0119-940

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


25/42


3937 0119-940 27

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 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 Collection Inquire/Delete (TFCLI) screen has the same layout as the Trade

Finance Collection Change (TFCLC) screen.


26/42


28 3937 0119-940

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 theRisk 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


27/42


3937 0119-940 29

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 parameterBP-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.


28/42


210 3937 0119-940

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.




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.


29/42


3937 0119-940 211

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

Figure 29. Trade Finance Schedule screen


30/42


212 3937 0119-940


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


31/42


3937 0119-940 213

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 eventcan 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.


32/42


214 3937 0119-940


33/42

3937 0119-940 31

Section 3Definition 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 Definition

Accepted This indicates whether or not the bill has been accepted:

On AcceptedOff Not accepted (this is the default)

T Y AcceptedN Not accepted (this is the default)

Accounting Centre 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.


34/42

Definition of Field Names

32 3937 0119-940

Field Definition

Available By This indicates the terms of the Letter of Credit:

Payment

AcceptanceNegotiation

Deferred

T P PaymentA Acceptance

N Negotiation

D 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 A free format narrative field that can be used to record details

relating to the terms of the bill.

Charges Taken Indicates whether charges have been paid to the bank:

On Charges paidOff Charges have not been paid

T Y Charges paidN Charges have not been paid


35/42


3937 0119-940 33

Field Definition

Client City The mnemonic of the client's city of residence.

In addition, for Letters of Credit and Collections:

1. The city of residence for the overseas client.

2. The mnemonic of the city where the overseas bank is based.

In addition, for Guarantees:

1. The mnemonic of the city of residence of the client in whose

favour the guarantee is drawn.

2. 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.

ForeignDomestic

T F ForeignD Domestic

Client Shortname 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.

Collateral This indicates whether the bank has received cash collateral for

the Letter of Credit:

No Cover No cash collateral (this is thedefault)

Cover Cash collateral

T N No cash collateral (this is the default)C Cash collateral

Collection

Reference Number

The reference number of the collection document, allocated by

the Trade Finance department.

Confirmation Indicates whether a confirmation has been received by the

counterparty:

On Confirmation received

Off Confirmation not received

T Y Confirmation receivedN Confirmation not received

Contract Number 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.


36/42


34 3937 0119-940

Field Definition

Currency The mnemonic of the currency of the guarantee. Currency

mnemonics are defined on the Currencies (CCYS) table.

CurrencyConversion Indicator Use this field to indicate whether a contract in an in currencyshould 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 Conversion requiredOff Conversion not required

T Y Conversion requiredN Conversion not required

Dealer Identifier The identifier of the officer responsible for the contract. These

identifiers are set up on the Dealers and Officers table (DEALR).

Diary Type This indicates the diary event type:

CommissionRate/Principal Change

T CM CommissionRP Rate/Principal change

Direction This indicates whether you are acting as the remitting bank

(Outward) or the collecting bank (Inward).

InwardOutward

T I InwardO Outward

Discount Bill

Number

The contract number of the bill of exchange that has been

discounted by the bank.

Expiry Date 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.

GL Master Number 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).


37/42


3937 0119-940 35

Field Definition

Guarantee Type One of the following must be selected, indicating the type of

contract being underwritten:

TenderPerformanceAdvance Payments

Progress Payments

Retention of Monies

Overdraft

T TE TenderPF Performance

AP Advance Payments

PP Progress Payments

RM Retention of Monies

OD Overdraft

Holiday Override This comprises two fields. The first indicates whether an event onthe contract can occur on a holiday:

On Yes, events can occur on holidaysOff No, events cannot occur on holidays

T Y Yes, events can occur on holidaysN No, events cannot occur on holidays

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 The date by which the goods must be shipped to the importer.

Letter of Credit

Reference Number

The reference number allocated to the Letter of Credit by the

Trade Finance department.

Letter Recovery Indicates whether the Letter of Credit is Revocable or Irrevocable

(this is the default).

RevocableIrrevocable

T R RevocableI Irrevocable

Market Rate 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.

Maturity Value The value of the contract at maturity. This field is only displayed ifyou are making an inquiry.


38/42


36 3937 0119-940

Field Definition

Message Priority 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

The original amount of the guarantee. Once entered, this amount

cannot be changed using the change screen.

Original Principal The original value of the contract. This field is only displayed if

you are making an inquiry.

Overseas Bank 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).


39/42


3937 0119-940 37

Field Definition

Overseas Customer 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 fieldidentifies 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 Enter the amount by which the principal has been repaid or

extended.

Principal Currency The mnemonic of the currency of the contract. Currency

mnemonics are set up on the Currencies Table (CCYS). This

field is mandatory.

Product Type 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 Maintenancetable (PRTPM).

Release of Goods This indicates whether or not the goods have been released:

On Goods have been releasedOff Not released

T Y Goods have been releasedN Not released

Result of Change Indicates whether the principal entered in the "Principal Change"

field is being repaid or extended.

Repay

Extend

T R RepayE Extend

Start Date The date on which the guarantee takes effect.


40/42


38 3937 0119-940

Field Definition

Status This indicates the status of the contract:

Active

DeletedMatured

Unstarted

T A ActiveD Deleted

M Matured

U Unstarted

Tender Number The reference number of the guarantee document, allocated by

the Trade Finance department.

Tender/Value

Percentage

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.

Trade Side Indicates whether you are acting on behalf of the Import orExport side of the deal.

ImportExport

T I ImportE Export

Value Date 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.


41/42

3937 0119-940 Index-1

Index

C

Collections, overview of, 1-3

Contract Diary Narratives, 2-13

D

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

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

S

Schedule Events

Adding, 2-10

Amending, 2-12

T

TFCLA screen, 2-6

TFCLC screen, 2-7TFCLI 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, 1-3Inquiries, 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 screenDescription of, 2-7

Trade Finance Contract

Creation, 2-2

Trade Finance Default Maintenance screen

Description of, 2-3

Example of, 2-3


42/42

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, 2-9Trade 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

940 trade finance-main

Documents