Create a bank facility agreement for a letter of credit

This article describes the steps for creating a Bank facility agreement to process a Letter of credit. For more information, see Set up bank facilities and posting profiles before running the steps below.

Create Bank facility agreement

1. Go to Cash and bank management > Letters of credit > Bank facility agreements.
2. Click New.
3. In the Agreement number field, enter the agreement number according to the agreement with the bank.
4. In the Bank account field, enter the account number at the issuing bank.
5. In the Start date field, enter a start date and time of the agreement.
6. In the End date field, enter a date and time of the agreement.
7. Expand or collapse the General section.
8. Click Add line.
9. In the Facility type field, click the drop-down button to open the lookup and select a record.
10. In the Limit field, enter the facility amount that was negotiated with the bank.
11. Click Save.
12. To extend the agreement, select Extend and open the drop dialog.
13. Type a value in the New agreement number field.
14. Enter an end date and time in the End date field.
15. Click Extend.
16. Close the page.