Export a letter of credit

Note

We will not be accepting edits to this topic, because it is generated from a business process in Lifecycle Services.

This procedure walks through the process of the Export letter of credit.

A letter of credit is an agreement that is issued by a bank, in which the bank agrees to ensure payment on behalf of the buyer, if the terms of the agreement between the buyer and seller are met.

Run the 'Set up bank facilities and posting profiles' procedure and the 'Letter of Credit_Create a bank facility agreement' procedure prior to this procedure. The USMF demo company must be selected in order to run this procedure successfully.

Create Sales Order for Export letter of credit

  1. Go to Accounts receivable > Orders > All sales orders.
  2. Click New.
  3. In the Customer account field, click the drop-down button to open the lookup.
  4. In the list, find and select the desired record.
  5. In the list, click the link in the selected row.
  6. Expand or collapse the General section.
  7. In the Site field, click the drop-down button to open the lookup.
    • Select the Site where the item to be issued is stocked.
  8. In the list, click the link in the selected row.
  9. In the Warehouse field, click the drop-down button to open the lookup.
    • Select the Warehouse where item to be issued is stocked.
  10. In the list, click the link in the selected row.
    • Note: The Bank document type field should be selected with the value 'Letter of credit'.
  11. In the Bank document type field, select 'Letter of credit'.
  12. Expand or collapse the Delivery section.
    • Select Delivery date control = None.
  13. In the Requested receipt date field, enter a date.
  14. Click OK.
  15. In the Item number field, click the drop-down button to open the lookup.
    • Select the required item to be Issued/Sold.
  16. In the list, find and select the desired record.
  17. In the list, click the link in the selected row.
  18. In the Unit price field, enter a number.
  19. Expand or collapse the Line details section.
  20. Click the Delivery tab.
  21. In the Requested ship date field, enter a date.
  22. In the Confirmed ship date field, enter a date.
  23. On the Action Pane, click Manage.
  24. Click Letter of credit.
  25. In the Bank document number field, type a value.
  26. In the Expiration date field, enter a date and time.
  27. Expand or collapse the Bank details section.
  28. In the Issuing bank field, click the drop-down button to open the lookup.
  29. In the list, click the link in the selected row.
  30. In the Advising bank field, click the drop-down button to open the lookup.
  31. In the list, find and select the desired record.
  32. In the list, click the link in the selected row.
  33. Click Fetch sales order shipments.
  34. Click Issue bank document.
  35. Close the page.

Post Packing slip

  1. On the Action Pane, click Pick and pack.
  2. Click Post packing slip.
  3. Expand or collapse the Parameters section.
  4. In the Quantity field, select 'All'.
  5. Expand or collapse the Setup section.
  6. In the Packing slip date field, enter a date.
  7. Select the Shipment number.
  8. In the list, click the link in the selected row.
  9. Click OK.
  10. Click OK.

Post sales invoice

  1. On the Action Pane, click Invoice.
  2. Click Invoice.
  3. Expand or collapse the Overview section.
  4. Select the Shipment number.
  5. In the list, click the link in the selected row.
  6. Expand or collapse the Setup section.
  7. In the Invoice date field, enter a date.
  8. Click OK.
  9. Click OK.

Shipment document submitted status

  1. On the Action Pane, click Manage.
  2. Click Letter of credit.
  3. Expand or collapse the Lines section.
    • Note: The 'Document submitted' field should be set to 'Yes'.

Verify Export letter of credit

  1. Go to Cash and bank management > Letters of credit > Export 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 that the Export letter of credit has a Shipment status of 'Invoiced'.

Customer payment

  1. Go to Accounts receivable > Payments > Payment journal.
  2. Click New.
  3. In the list, mark the selected row.
  4. In the Name field, click the drop-down button to open the lookup.
  5. In the list, click the link in the selected row.
  6. Click Lines.
  7. In the Date field, enter a date.
  8. In the Account field, specify the desired values.
  9. Click Settlement.
  10. Select the check box on the header of Totals.
    • Note: Set the Show field to 'Letter of credit'.
  11. In the list, find and select the desired record.
  12. Select or clear the Mark check box.
  13. Click OK.
  14. Click the Payment tab.
    • Verify Bank document number and Shipment number details
  15. Click Post.

Verify Export letter of credit after payment

  1. Go to Cash and bank management > Letters of credit > Export 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 Shipment status = Payment received and balance amount = 0.00.