P0102 Purpose Code: Realisation of export bills (in respect of goods) sent on collection

Purpose code P0102 is used when an Indian exporter receives the full invoice value of an export bill that was sent on collection.

What is the P0102 purpose code?

Purpose code P0102 is used when an exporter in India is paid on an export bill that was sent to the buyer's bank for collection. Under this route the bank forwards the documents and waits for the overseas buyer to pay, rather than advancing money against the bill, which is why the exporter receives the full invoice value when it realises. The code specifically excludes exports to Nepal and Bhutan, which are reported under their own codes, so check the destination before applying it. Under RBI FEMA guidelines, this inward payment is classified under Exports (of Goods) and reported accordingly.

When to use P0102 purpose code?

Use P0102 when you have shipped goods from India, the export bill went out on collection, and the overseas buyer's payment has come through. It is the correct RBI receipt code for the plain export collection route, where no bank finance sits between you and the buyer's payment. P0102 applies to the export of goods, whatever your business structure.

When to use a different code:

• Use P0101 when your bank negotiated, purchased, or discounted the export bill rather than sending it on collection
• Use P0103 when the money is an advance received against an export contract before shipment
• Use the matching S-code when you are paying a foreign vendor rather than receiving money

Who typically uses P0102 purpose code

Indian goods exporters who ship on open account or documentary collection terms and wait for the buyer to pay, including manufacturers, traders, and merchant exporters working with established overseas customers. It applies whether you export as a proprietorship, a partnership, or a registered company.

Examples of transactions covered under P0102 purpose code

• Payment received when an overseas buyer settles an export bill sent through documentary collection
• Full invoice value credited after a customer pays against a shipment of goods
• Realisation of a collection bill covering a consignment despatched to an international buyer
• Proceeds received on a shipment where documents were released against payment by the buyer's bank

When NOT to use P0102 purpose code

• Your bank negotiated, purchased, or discounted the export bill rather than sending it on collection (use P0101)
• The money is an advance received against an export contract before the goods ship (use P0103)
• The goods were exported to Nepal or Bhutan, which are excluded from this code and reported separately
• You are paying a foreign vendor rather than receiving (use the matching S-code)

Documents required for P0102 purpose code

To receive a payment under P0102, keep the following documents ready so your bank or platform can verify the transaction and report it correctly under FEMA.

How is a P0102 Purpose Code declared?

Declaring the code is pretty straightforward. Here's how the payment gets tagged and reported.

1. Ship the goods: Export the consignment and file the shipping bill and export declaration.
2. Send the bill on collection: Your bank forwards the documents to the buyer's bank for payment.
3. Declare the purpose: State the purpose of the inward remittance, on your bank's form or through your platform.
4. Submit supporting documents: Provide the shipping bill, invoice, and KYC so the bank can verify the transaction.
5. Get your FIRA: Once processed, your FIRA is issued as proof and the payment is reported under FEMA.
6. With a traditional bank you handle each step of your payment journey. But with a platform built for cross-border payments, you can preselect a default purpose code so that the payments land smooth.

Common mistakes to avoid while using P0102 purpose code

A few common slips can hold up your payment or cause compliance issues. Here's what to watch for.

1. Mixing up collection and negotiation: Using P0102 when your bank negotiated or discounted the bill and advanced you money against it, which belongs under P0101.
2. Code and document mismatch: The code not matching what your shipping bill and invoice describe, which flags the payment.
3. Incomplete documents: Missing shipping bill, invoice, or KYC, so the bank holds funds until provided.
4. Missing PAN or KYC: Incomplete verification stops the bank from releasing the payment.
5. Ignoring the Nepal and Bhutan exclusion: Applying this code to shipments to those two countries, which are reported under separate codes.
6. Using an inward code for an outward payment: Applying a receipt code to money you're sending out instead of the matching outward code.

How Skydo simplifies inward remittance under P0102 Purpose Code

With a bank, you declare the purpose code on your own for every single payment. With Skydo, you can preselect your code once and every payment gets tagged automatically.

1. Preselect the code once: Set P0102 as your default and Skydo tags every incoming payment for you, so there's no form to fill on each one.
2. No repeat declarations: A bank makes you restate the purpose for every remittance. Skydo does it in the background, the same way each time.
3. Instant, free FIRA: Your remittance proof is generated and stored on every payment, ready for your CA, GST, and audits, with no request and no fee.
4. Zero FX markup: You get the live mid-market rate with a flat, visible fee, instead of a markup hidden inside the bank's rate.
5. Settled in 24 hours: Your payment reaches your Indian bank within a day, fully reported and compliant.