Introduction

A letter of credit (LOC) is often used in international trade to reduce risks such as unfamiliarity with a foreign country or political instability. It is a binding document that you can request from your bank to guarantee that the payment for goods you purchase will be transferred to the seller. Therefore, the LOC provides reassurance that the seller will receive the payment for the goods. For the payment to occur, the seller needs to present the necessary shipping documents confirming the delivery of goods to the bank.

The LOCs functionality is enhanced by providing you with the flexibility to process multiple LOCs for multiple creditors which improve the efficiency in processing of payments.

Menu path

• Cash flow/Payables/Print (Spanish legislation)
• Cash flow/Miscellaneous/Instrument status (French and Moroccan legislation)

What has been changed

The following changes have been implemented for the Spanish, French, and Moroccan legislations:

• You can process multiple LOCs for multiple creditors.
  
  Note: For the French and Moroccan legislations, this enhancement is applicable only to the cash out option.
• You can no longer process the LOCs displayed under the All option. You can only process LOCs displayed under the Authorized or Printed options.
• If the total amount of the selected LOCs is less than zero (negative value), a message “Negative amounts were selected. These will not be processed. Do you want to continue?” will be displayed. If you choose to proceed, only individual LOCs which are more than zero will be processed and only grouped LOCs where the total amount is more than zero will be processed.
• When processing multiple LOCs, the LOCs will be grouped automatically if they have the same Cash instrument, Creditor, Transaction currency, Payment currency, Payment method, Payment reference, and Payment date.
• Once the LOCs are processed, for multiple creditors, the system to print only the unprinted LOCs. Printed LOCs will not be reprinted.
• In the Process: Bill of exchange screen, all fields will be disabled except for the Issue date when processing multiple LOCs for multiple creditors. The term "Multiple" will be displayed in the Payment reference and Letter of credit fields.

The screen below is an example from the Spanish legislation. This Print screen is the same as the Instrument status screen for the French and Moroccan legislations with the exception of the Cash in and Cash out options available in the French and Moroccan legislations but not in the Spanish legislation.

Related document

There are no related documents for this release note.