Document Settlement in Export L/C:

The process begins when an Exporter/Beneficiary submits the required documents to their Bank after shipping goods, as per the terms of a letter of credit. The beneficiary banks checks the documents as per LC terms and then forwards them to the Issuing Bank. If the docs is credit compliant, payment is made to the exporter via their Bank, and the importer receives the documents on the other side. The payment depends on the method of settlement (Payment, Acceptance, Deferred Payment, Mixed Payment..)  used in the LC. 

How to Settle the Documents (Sight/Usance) in RIVO: 

When the Docs presented under Export LC is processed in RIVO by the Bank using 'Doc Processing' option available in context menu there are two possibilities,

1. If documents are clean irrespective of SIGHT or USANCE -  after processing the transaction status will be changed to 'Doc Processed - Clean' 
2. If documents are discrepant irrespective of SIGHT or USANCE - after processing the transaction status will be changed to 'Doc Processed - Disc' 

For more details on Document presentation, please refer the article, How to Present the Document in Export LC using Rivo

Acceptance for the Usance Docs: 

If Beneficiary's bank has received Acceptance for the Clean/Discrepant documents, the bank user is allowed to choose 'Accept Doc' from menu options.

Clean docs:

Discrepant docs: 

When the Bank user signs the 'Accept Doc' transaction, the status will be updated as 'Doc Accepted'.

Settlement:

After receiving the payment from Issuing Bank, the bank now settle the document instantly (Sight LC) or on/before the maturity date (Usance LC) using 'Settle Doc' option, 

Sight Settlement : 

Usance Settlement:

When the bank user signs the 'Settle Doc' transaction, the status will be updated as 'Doc Settled'.