Relation between letters of credit and purchase orders

Finance and Operations/AX User Forum
1

In AX 2012 R2, For a purchase order, Import Letter of credit (LC) can be created.

Is it possible to configure the following :

  1. Two different Purchase orders in One letter of credit?

  2. One Purchase order with multiple Letter of credit?

Your ideas would be of great help! Thanks

2

Hi Vinodh,

Would you please share any document or steps about how can i process LC in AX2012

Thanks

3

Hi Mohamed,

You can refer to this link http://technet.microsoft.com/en-us/library/hh208954.aspx

In brief these are the steps;

  1. Enable LC in GL setup

  2. In Cash and Bank mgt, setup, Bank facility agreement and posting profile

  3. Select bank doc. type as Letter of credit while creating PO

  4. Confirm PO

  5. In Action pane - Manage group - Letter of credit.

Regards,

Vinodh

4

Dear Vinodh,

Thanks a lot for your link . it was very helpful for me

but , After Post the packing & Invoice
regarding the last step [settelment]
i failed to select the shipment number on the daily journal line for Transaction type field = Settlement

did you why i couldn’t find it works as described below
*****************************************************************************
Make a payment for the invoice
After the purchase order is invoiced, you can make the payment and settle the accounts. The payment for the letter of credit must be equal to the amount due minus the margin amount because the margin amount is already collected by the bank. The payment must be within the tolerance limit for the letter of credit.
Click General ledger > Journals > General journal.
Press CTRL+N to create a new journal.
In the Name field, select a daily journal, and then click Lines to open the Journal voucher form.
Enter the required information.
Click the Payment tab, and then in the Transaction type field, select Settlement.
In the Letter of credit / import collection and Shipment number fields, select the bank document number associated with the letter of credit and the shipment number.
Click Post > Post to post the journal. After the settlement invoice is posted, the letter of credit status is set as Closed.

Thanks & BR
Mohamed

5

Dear I have this issue

I created PO for an Item (222 $)

Allocated Misc Charges for Import that is Freight (100 $)

Purchase Order Confirmed

Letter of Credit in Manage Tab confirmed (322 $ that is PO of Item plus Freight Misc Charges)

Margin payment posted in GL Lines for Bank (100 SR)

Now unable to post the packing slip

ERROR IS

THE TOTAL AMOUNT FOR PRODUCT RECEIPT FOR ORDER IS NOT EQUAL TO SHIPMENT AMOUNT (322)

LETTER OF CREDIT SHIPMENT

Q1. How I will make PO amount 322 so that it will be equal to my shipment amount

Q2. What is the purpose of margin payment posted in GL lines

6

Instead you can go to Payment journal > enter to lines select the Vendor and then Functions Button > select Settlement. this will give you all invoices not yet settled for that Vendor select the one the LC (you can filter invoices list by changing the combo from type All to Letter of credit)

Select the invoice(s) and confirm, this will take you back to the voucher line add the offset bank account and the amount. then post !

7

Hi,

I am also facing this problem in AX2012 r3, while i trying to pay it through AP, settlement window is not showing the margin transaction, resulting, the payment is proceed without deduction of margin.

regards,

Shakil Ahmed.