Set up bank facilities and posting profiles for letter of credit

This article describes how to set up bank facilities and posting profiles which are required to process letters of credit.

Cash and bank management parameters

1. To enable import and export of letter of credit, go to Cash and bank management > Setup > Cash and bank management parameters.
2. Expand the Bank document section.
3. Select Yes for the Enable import letter of credit option.
4. Select Yes the Enable export letter of credit option.
5. Click Save.

Create Bank facility

1. To create a bank facility, go to Cash and bank management > Setup > Bank facilities.
2. Click New.
3. In the Facility group field, enter the bank facility group name.
4. In the Description field, enter the bank facility group description.
5. Click Save.
6. Click the Facility types tab.
7. Click New.
8. In the Facility type field, enter a unique code.
9. In the Description field, type a value.
10. In the Facility group field, click the drop-down button to open the lookup and select a desired facility group record.
11. In the Facility nature field, select the nature of the bank facility.
12. Click Save.

Bank posting profile

1. To configure a bank posting profile, go to Cash and bank management > Setup > Bank documents posting profile.
2. Click New.
3. In the Account code field, select Group to define a posting profile for a facility group, or Table to create a posting profile for a specific facility type.
4. In the Account/Group number field, click the drop-down button to see the lookup values and select required record.
5. Select the main account for settlement in the Settle account field. This account is used when calculating cash flow forecast.
6. In the Charges account field, select the account for expense transactions.
7. In the Margin account field, select the account for margin transactions. This account is debited when the opening margin is posted and credited when the payment is posted.
8. Click Save.