Payment drafts-AP letters of credit

Bills of exchange usually accompany a letter of credit (LOC) for the purposes of collection.

A pro-forma invoice is usually generated in order to secure a LOC, with the goods that are released when the LOC has been received.

India specifics

Payment drafts are common in international trade, particularly Letters of Credit. LOCs must be assigned against outstanding AP invoices when the LOCs have been accepted rather than keeping a record until the LOC matures and the AP invoices are cleared.

How Infor meets the requirement

See the Payables User Guide for information about processing bills of exchange.