NavigateERP for African business

Settle: pay in full or convert into a loan

The margin applied first, then the bank pays - or the bank finances it.

Steps

  1. On accepted documents, Settle, choose the account and the margin to apply.
  2. Pay in full: the margin comes back into the account and the supplier is paid the whole amount - a supplier payment, allocated to the supplier invoices you give (else on account).
  3. Convert into a loan: a trade-finance loan from the issuing bank for the amount less the margin, in the LCโ€™s currency, on the policy, rate and term you choose. It is drawn into the account and the supplier paid from it - the loan then runs in Treasury โ†’ Loans (schedule, interest, repayments, currency conversion).

Good to know

  • Foreign currency: the margin is booked at the rate of the day it moved; applied or released at that value, the difference is an exchange gain or loss. Margin still held is revalued at month end with the other foreign balances.