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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
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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.
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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.
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About This Guide
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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.
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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
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
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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 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.
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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.
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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
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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
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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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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.
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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.
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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).
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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.
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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 FinanceSchedule(TFSCH)
Trade Finance
Guarantee
Add
(TFGTA)
Trade FinanceSchedule(TFSCH)
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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
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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 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.
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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 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.
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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
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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 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.
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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 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.
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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.
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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
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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.
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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).
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Definition of Field Names
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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.
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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).
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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.
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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.
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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
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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