Creating a Vendor Letter of Credit

  1. On the Vendor Letters of Credit form, select Actions > New.
  2. Specify this information:
    Vendor
    Select the vendor to whom this Letter of Credit should be assigned. The name of vendor is displayed.
    LCR
    Specify the letter of credit number, which is issued by the bank. This number can be up to 20 characters.
    Date Issued
    The current date is displayed by default. Optionally, select another date to use as the issue date for the LCR.
    Status
    Select the status of the letter of credit:
    • Planned
    • Open
    • Expired
    • Complete
    Expiration Date
    Select the expiration date of this letter of credit.
  3. Optionally, specify this additional information:
    Confirmation
    Optionally, specify a user-defined confirmation number.
    Confirmed
    Select this check box to confirm the vendor letter of credit.
    Revolving
    Select this check box to allow the letter of credit to be used on multiple purchase orders. A revolving letter of credit is generally used when the deliver of goods is made in installments and at stipulated intervals. The amount of a revolving letter of credit may, under the terms and conditions, be renewed without specific amendments.
    Revocable
    Select this field to make the selected letter of credit revocable. A revocable letter of credit can be amended or cancelled by the issuing bank at any time without the consent of the beneficiary, often at the request, and on the instructions, of the applicant.
    LCR Amount
    Specify the amount of the letter of credit.
    Accumulated PO Value
    The accumulated total of purchase orders tied to this specific letter of credit is displayed.
    Accumulated Received Value
    The accumulated value of all received goods tied to this specific letter of credit is displayed.
  4. This information is displayed based on the vendor:
    • Currency
    • Bank code and name
    • Bank address
  5. Save the record.
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