Letter of Guarantee against Purchase Order in Ax 2012 1


Step 1 : Enable Letter of Guarantee

Navigate to Cash & Bank Management -> Setup -> Cash & Bank Management Parameters

Enable LG

 

 

 

 

 

Step 2 : Create a new Bank Facility

Navigate to Cash & Bank Management -> Setup -> Bank documents -> Bank Facilities

New LG

 

 

Step 3 : Create a new Bank Facility Agreement

Navigate to Cash & Bank Management -> Setup -> Bank documents -> Bank Facility Agreement

LG Facility Agreement

 

 

 

 

 

Step 4 : Define Bank Document Posting Profile

Navigate to Cash & Bank Management -> Setup -> Bank documents -> Bank Documents Posting Profile

LG Posting

 

 

Step 5 : Create a new Purchase Order

On PO creation screen -> General tab -> Select Bank Document Type as ‘Letter of Guarantee’

Bank Doc Type

 

 

Step 6 : Navigate to Purchase order action menu -> Manage tab -> Bank document -> Letter of Guarantee

Click Request

Fill the requested info

click Ok

LG Request

 

 

 

 

Step 7 : Navigate to Cash & Bank Management -> Common -> Letters of Guarantee

Here you will see the LG record created against PO

Click on ‘submit to Bank’ button to submit the request

Select the Bank to apply agreement facility

submit to bank

 

 

 

Once request is submitted to bank, ‘Receive from bank’ button is enabled

 

 

Step 8 : Click on ‘Receive from bank’ button

System opens a new screen to mention Bank LG #

Also define value for Margin and Expense if any

Bank LG no.

 

 

 

 

 

Note: To calculate Margin / Expense, the same setup can be done on Bank facility agreements form as well.

 

Step 9 : Once guarantee received from Bank, navigate back to Purchase order -> Letter of guarantee

Click on ‘Give to beneficiary’ button to request bank to issue guarantee to supplier

 

Step 10 : Navigate back to Cash & Bank Management -> Common -> Letters of Guarantees form

Issue the guarantee to supplier by clicking on Give to beneficiary button

To review all the actions against LG, refer the Action pane on the same Letters of Guarantees form

LG_Action

 

 

 

 

Once LG is given to beneficiary, you can liquidate LG.

Step 11 : To liquidate LG, navigate back to Purchase order -> Letter of guaranteeLiquidate LG

 

 

 

 

 

Once liquidated, Bank account gets credited with the guarantee amount and liquidated account gets debited.

 

Happy Learning!

 

 


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