Import letter of credit

This procedure walks through the process of importing a letter of credit. The following must be set up before completing this procedure: bank facilities, posting profiles, a bank facility agreement and vendor bank details.

This procedure uses the USMF demo company.

Create a Purchase order with Letter of credit

1. Go to Accounts payable > Purchase orders > All purchase orders.
2. Click New.
3. In the Vendor account field, enter or select a value.
4. In the list, find and select the desired record.
5. In the list, click the link in the selected row.
6. Expand the General section.
7. In the Site field, enter or select a value.
8. In the list, click the link in the selected row.
9. In the Warehouse field, enter or select a value.
10. In the list, click the link in the selected row.
11. In the Accounting date field, enter a date.
12. In the Delivery date field, enter a date.

Note

The Bank document type field should be Letter of credit.

13. Click OK.
14. In the Item number field, enter or select a value.
15. In the list, find and select the desired record.
16. In the list, click the link in the selected row.
17. Expand the Line details section.
18. Click the Delivery tab.
19. In the Delivery date field, enter a date.
20. In the Confirmed delivery date field, enter a date.
21. In the Unit price field, enter a number.
    • Define the Letter of credit details.
22. On the Action Pane, click Manage.
23. Click Letter of credit/import collection.
24. In the Application date field, enter a date and time.
    • Verify that the Bank account field has the default active Bank account, which is based on the application date.
25. In the Bank document number field, type a value.
26. In the Date of receipt field, enter a date and time.
27. Expand the Bank document section.
28. In the Expiration date field, enter a date and time.
29. Expand the Bank details section.
30. In the Advising bank field, enter or select a value.
31. In the list, click the link in the selected row.
32. Click Save.
33. Click Fetch purchase order shipments.
34. Close the page.
35. On the Action Pane, click Purchase.
36. Click Confirm.
37. On the Action Pane, click Manage.
38. Click Letter of credit / import collection.
39. Click Process.
40. Click Confirm.
    • Verify that the Facility balance reduces the purchase order amount. In this example, Purchase amount = 500.00, Facility limit = 10000.00, therefore, Facility balance = 9500.00.
41. Close the page.
42. In the Unit price field, enter a number.
43. Click Save.
44. On the Action Pane, click Purchase.
45. Click Confirm.
    • Amend the letter of credit, due to the change in Unit price.
46. On the Action Pane, click Manage.
47. Click Letter of credit / import collection.
    • Amend the letter of credit, due to the change in Purchase unit price.
48. Click Process.
49. Click Amend.
50. Click Remove.
51. Click Yes.
52. Click Fetch purchase order shipments.
53. Click Process.
54. Click Confirm.
    • Verify that the Facility balance reduces the purchase order amount. In this example, edited Purchase amount = 600.00, Facility limit = 10000.00, therefore, Facility balance = 9400.00.
55. Close the page.

Post Packing slip

1. On the Action Pane, click Receive.
2. Click Product receipt.
3. In the PurchParmTable_Num field, type a value.
   • Select the Shipment number created with reference to the Letter of credit.
4. In the list, click the link in the selected row.
5. In the Product receipt date field, enter a date.
6. Click OK.
7. Close the page.
8. Close the page.

Verify Import letter of credit status

1. Go to Cash and bank management > Letters of credit > Import letter of credit and import collection.
2. In the list, find and select the desired record.
3. In the list, click the link in the selected row.
   • Verify the Import letter of credit status.
4. Close the page.
5. Close the page.

Post purchase invoice

1. Go to Accounts payable > Purchase orders > All purchase orders.
   • Select the purchase order that was created with letter of credit.
2. In the list, find and select the desired record.
3. In the list, click the link in the selected row.
4. On the Action Pane, click Invoice.
5. Click Invoice.
6. In the Number field, type a value.
7. In the Shipment number field, enter or select a value.
8. In the list, click the link in the selected row.
9. In the Invoice date field, enter a date.
10. Click Update match status.
11. Click Post.
12. Close the page.
13. Close the page.

Verify Import letter of credit status and printing

1. Go to Cash and bank management > Letters of credit > Import letter of credit and import collection.
2. In the list, find and select the desired record.
3. In the list, click the link in the selected row.
   • Verify the Import letter of credit2.
   • Validate: Shipment status = Invoiced Bank facility details
4. Click View.
5. Click Print application.
6. Click OK.
   • Verify that the Letter of credit application gets printed.
7. Close the page.
8. Close the page.
9. Close the page.

Post Vendor payment journal for the created purchase invoice with letter of credit

1. Go to Accounts payable > Payments > Payment journal.
2. Click New.
3. In the Name field, enter or select a value.
4. In the list, click the link in the selected row.
5. Click Lines.
6. In the Date field, enter a date.
7. In the Account field, specify the desired values.
8. Click Settle transactions.
9. Expand the Totals section.
10. In the Show field, select an option.
    • Verify that the Bank document number and Shipment number fields have been updated.
11. Select the Mark checkbox.
12. Click OK.
13. Click the Payment tab.
    • Verify that the Bank document number and Shipment number fields have been updated.
14. Click Post.
15. Close the page.
16. Close the page.

Verify Import letter of credit status after Invoice paid

1. Go to Cash and bank management > Letters of credit > Import letter of credit and import collection.
2. In the list, find and select the desired record.
3. In the list, click the link in the selected row.
   • Verify the Import letter of credit status.
4. Close the page.

Verify the Bank facility limit and utilization report

1. Go to Cash and bank management > Inquiries and reports > Letters of credit or guarantee > Bank facilities and utilization report.
2. Expand the Records to include section.
3. Click Filter.
   • Define the Criteria field with the required bank account.
4. In the Criteria field, enter or select a value.
5. In the list, click the link in the selected row.
6. Click OK.
7. Click OK.
   • Verify the report which lists the transactions.
   • Verify the report lists the transactions with Bank document number, Facility limit, utilized amount and the facility balance amount.
8. Close the page.