About Customer Letters of Credit
A letter of credit (LCR) is a document from a bank stating that the bank will
insure the customer's payment. The customer either deposits money with the bank, or the
bank extends them credit; but the bank guarantees payment. Many vendors in Asia and some
European countries require letters of credit.
On the Customers form, you can specify whether you require an LCR for the customer.
Note: LCRs link to
only one customer, though corporate customer functionality is still available
when checking credit. In the Customers area of the system, letter of credit
authorizations are the same as in the Accounts Receivable area.