Import letter of credit

The steps below describes the process of importing a letter of credit. Bank facilities, posting profiles, a bank facility agreement and vendor bank details have to be configured before starting this process. For more details, see Set up bank facilities and posting profiles for letter of credit and Create a vendor bank account.

Create a Purchase order with a Letter of credit

1. To create a Purchase order with a letter of credit, go to Accounts payable > Purchase orders > All purchase orders.
2. Click New.
3. Select a vendor value in the Vendor account field.
4. Expand the General section.
5. Select values for Site and Warehouse fields.
6. Enter dates in the Accounting date and Requested receipt date fields.

Note

The Bank document type field should be Letter of credit.

7. Click OK.
8. In the purchase order lines, select Item number.
9. Expand the Line details section.
10. Click the Delivery tab.
11. In the Confirmed receipt date field, enter confirmed delivery date.
12. Check the purchase order lines again and add Unit price value. This value might already default from purchase trade agreement or item setup.
13. To define the Letter of credit details, on the action pane, click Manage > Letter of credit/import collection.
14. In the Application date field, enter a date and time. Verify the Bank account field has the default active bank account, which is based on the application date.
15. In the Bank document number field, type a value.
16. In the Date of receipt field, enter a date and time.
17. Expand the Bank document section.
18. In the Expiration date field, enter a date and time.
19. Expand the Bank details section.
20. In the Advising bank field, enter or select a value.
21. Click Save.
22. On the Lines, click Fetch purchase order shipments.
23. Return back to the Purchase order.
24. On the Action Pane, click Purchase.
25. Click Confirm.
26. On the Action pane, click Manage.
27. Click Letter of credit / import collection.
28. Click Process.
29. Click Confirm. After re-confirmed, verify the facility balance reduced by the purchase order amount in the Bank facility agreements page. For example, Purchase amount = 500.00, Facility limit = 10000.00, therefore, Facility balance = 9500.00.

Amend the price on the Purchase Order line

1. Open the purchase order and update the Unit price field on the purchase order line.
2. Click Save.
3. Confirm the purchase order by clicking Purchase > Confirm on the Action pane.
4. Due to the Unit price changes, you should amend the letter of credit by clicking Manage > Letter of credit / import collection on the Action pane.
5. Click Process > Amend.
6. Click Remove > Yes.
7. Click Fetch purchase order shipments on the Lines on the Letter of credit / import collection.
8. Click Process > Confirm. Verify the facility balance reduced by the updated purchase order amount in the Bank facility agreements page. For example, edited Purchase amount = 600.00, Facility limit = 10000.00, therefore, Facility balance = 9400.00
9. Close the page.

Post Packing slip

1. On the Action Pane, click Receive.
2. Click Product receipt.
3. In the Product receipt field, enter a product receipt number.
4. Select the Shipment number created with reference to the Letter of credit.
5. Enter a Product receipt date.
6. Click OK.

Verify Import letter of credit status

1. Go to Cash and bank management > Letters of credit > Import letter of credit and import collection.
2. Verify the Import letter of credit status.

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. On the Action Pane, select Invoice.
3. Click Invoice.
4. Type in the Invoice number in the Number field.
5. Select the corresponding Shipment number.
6. In the Invoice date field, enter an invoice date.
7. Click Update match status.
8. Post the invoice by pressing Post.

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. Verify the Import letter of credit details.
4. Validate Shipment status = Invoiced.
5. To print the Letter of credit, Click View on the Action pane, and then select Print application.

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, select vendor payment journal name.
4. Click Lines.
5. In the Date field, enter a date.
6. In the Account field, select the vendor account from the Purchase Order. Click Save.
7. Click Settle transactions.
8. Select an invoice to pay. Verify that the Bank document number and Shipment number fields are correct.
9. Select the Mark checkbox for the invoice to pay. Click OK.
10. Select the Payment tab and verify that the Bank document number and Shipment number fields have been updated.
11. Click Post.

Verify the 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 record.
3. Go to the Lines and verify the Import letter of credit status is Confirmed and Shipment status is Paid.

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 and define the Criteria field with the required bank account.
4. Click OK and run the report.
5. Verify the report lists the transactions with Bank document number, Facility limit, utilized amount and the facility balance amount.