Letters of credit

  • Letter of credit

    The letter of credit (L/C) functionality supports maintaining and processing letters of credit from both the seller's and the buyer's perspective.

  • Letter of credit setup

    To use the letters of credit functionality, you must activate the concept and specify whether you use import, export, domestic purchase, or domestic sales letters of credit.

    You must also authorize the users involved in the letter of credit process.

    For purchase orders, sales orders, and contract deliverables, you must set up reason codes for non-compliance with conditions specified for the applicable letters of credit.

  • Procedures

    As a seller, you can use the export letter of credit procedure to maintain these types of letters of credit:

    • Export Letter of Credit
    • Domestic Sales Letter of Credit

    As a buyer, you can use the import letter of credit procedure to maintain these types of letters of credit:

    • Import Letter of Credit
    • Domestic Purchase Letter of Credit
  • Authorization

    In LN, the letter of credit procedures include various steps. For each step that is completed, you can approve a letter of credit and set a specific status.

    Different sets of statuses are available for the import and export procedures.

    To complete a step by setting a status, and to approve a letter of credit up to a specific amount, a user requires authorization.