letter of credit

satish_sanap
satish_sanap Member Posts: 2
edited 2010-07-14 in Navision Financials
if you provide the Information related the following query

pls tell me about the Letter Of Credit functionality in navision?

What is the role of LC Journal in the Functionality?? :

Comments

  • ssingla
    ssingla Member Posts: 2,973
    Unfortunately I have never seen LC manual/feature Instruction Manual ever and I have never implemented the module. Still AFAIK, the module helps in defining the various LC's, their nature, value, type and further the purchase and sales order/invoice can be linked with the LC's.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • Ravikandula
    Ravikandula Member Posts: 42
    Hi Satish,

    The specified bank makes the payment upon the successful presentation of the required documents by the seller within the specified time frame. Note that the Bank scrutinizes the 'documents' and not the 'goods' for making payment. Thus the process works both in favor of both the buyer and the seller. The Seller gets assured that if documents are presented on time and in the way that they have been requested on the LC the payment will be made and Buyer on the other hand is assured that the bank will thoroughly examine these presented documents and ensure that they meet the terms and conditions stipulated in the LC.

    1. We define LC limit in bank account card.
    bank account - LC cr limit.
    2. In LC Details we will fill the details related to sale and release the LC.
    3. this LC no will be attached to sales invoice.
    4. Based on that we know the information how much LC limit in bank and how much we have utilised till now.

    Regards,
    Ravi Kandula.

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