Set up bank facilities and posting profiles for 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 creating a Bank facility and posting profile required to process Letters of credit.

This tasks uses the demo company 'USMF'.

General ledger parameter

  1. Go to Cash and bank management > Setup > Cash and bank management parameters.
  2. Expand the Bank document section.
  3. Select the Enable import letter of credit option.
  4. Select the Enable export letter of credit option.
  5. Click Save.
  6. Close the page.

Create Bank facility

  1. 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.
  11. In the list, find and select the desired record.
  12. In the list, click the link in the selected row.
  13. In the Facility nature field, select the nature of the bank facility.
  14. Click Save.
  15. Close the page.

Bank posting profile

  1. Go to Cash and bank management > Setup > Bank documents posting profile.
  2. Click New.
  3. In the Account/Group number 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. Select the main account for settlement.
    • This account is used when calculating cash flow forecast.
  7. In the Charges account field, select the account for expense transactions.
  8. 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.
  9. Click Save.