Letter of credit / import collection (form) [AX 2012]

Updated: February 21, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Use this form to enter details for an import letter of credit (LC) or import collection that is associated with a purchase order.

Click Cash and bank management > Common > Letters of credit > Import letter of credit/import collection. Double-click the order number that is associated with the import LC to be updated.

-or-

Click Procurement and sourcing > Common > Purchase orders > All purchase orders. Select a purchase order, and then on the Manage tab, click Letter of credit / import collection.

NoteNote

You can only open the Letter of credit / import collection form from a purchase order whose Bank document type is Letter of credit or Import collection.

The following tables provide descriptions for the controls in this form.

Tab

Description

General

Enter and view specific information about the LC or import collection.

Button

Description

Edit

Modify the LC or import collection record.

Delete

Delete an LC or import collection record.

Confirm

Confirm the LC or import collection details that are either entered or changed.

Amend

Change the LC or import collection details.

Close

Close an LC or import collection.

Bank document margin

Open the Bank document margin form to view and allocate the document margin.

Print application

Print the LC or import collection details on the application form.

Inquiries

Open the Letter of credit/import collection history form to view the amendment history of an LC or import collection.

Attachments

Add any attachments to the LC or import collection.

Fetch purchase order shipments

Retrieve the shipment details from the purchase order lines.

Shipment margin transactions

Open the Shipment margin form to view the shipment margin transactions.

Field

Description

Order number

The purchase order number that is also the reference number for the LC or import collection.

Bank document number

Enter the document number issued by the bank. You cannot confirm an LC or import collection without specifying the bank document number.

Facility type

Select the facility type from the bank facility agreement associated with the LC or import collection.

Bank document type

The bank document type specified in the associated purchase order. This can be Letter of credit or Import collection.

Bank account

Enter the company bank account number related to the facility agreement.

Date of receipt

Enter the date when the LC or import collection confirmation was received from the bank.

Application date

Enter the application date for the LC or import collection. By default, the current date is displayed.

Agreement number

The bank facility agreement number that the LC or import collection is associated with. The facility agreement and the LC or import collection are linked based on the date when the LC or transaction details are entered.

Facility balance

The amount that is available for the LC or import collection. This value is based on the Limit and Amount used fields in the Bank facility agreements form.

Status

The status of the LC or import collection can be any of the following options:

  • Created – The default status of the LC or import collection when the document is created.

  • Confirmed – The status of the LC after it is confirmed. You can modify the LC when its status is Confirmed.

  • Closed – The status of the LC after it is closed. You can close the LC only after all shipments or invoices are accounted against the payments.

Amendment number

The version number of the LC. This number is incremented each time the LC is amended and confirmed.

Field

Description

Shipment number

The shipment line number that is generated when shipment details are entered.

Amount

Enter the amount of the shipment. The total of all shipment lines cannot exceed the amount stipulated for the LC.

Expected maturity date

Enter the date by which the shipment documentation is expected to be delivered.

Actual maturity date

Enter the date when the shipment document status changes to Received. This date must be the exact maturity date as received from the bank.

Document status

Select the status of the shipping documents from the following options:

  • Received – You have received documents from the bank that show the exact maturity date of the shipment.

  • Not received – You have not yet received documents from the bank.

  • Shipping guarantee – The documents have not yet been received, and the beneficiary requests that the bank issues a shipping guarantee.

Shipment status

The shipment status is set to one of the following options:

  • Created – A shipment is created for an unconfirmed LC or import collection.

  • Open – The shipment has not yet been received for a confirmed LC.

  • Product receipt updated – The packing slip has been updated against a shipment.

  • Invoiced – The invoice has been posted against a shipment.

  • Paid – A settlement or payment journal has been posted for the shipment.

Field

Description

Documentary credit type

Select the LC type as Revocable or Irrevocable. Import LCs are often referred to as documentary credits (DC or D/C) or documentary letters of credit.

Documentary credit nature

Select the nature of the LC. An LC can be Transferable, Non transferable, or Revolving.

Vendor account

The vendor account specified in the purchase order.

Beneficiary

The name of the organization that receives the payment against the LC from the bank. You can modify the name, if required.

LC / IC Amount

The sum of the purchase order line amounts and taxes. This must be equal to the total amount of the purchase order.

LC tolerance amount

Enter the tolerance amount for the LC.

Tolerance percentage

Enter the percentage of the LC amount that can be adjusted as tolerance. This percentage is used to check the tolerance for the invoice settlement.

Tolerance type

Select the type of acceptable tolerance for an LC. The tolerance type can be Blank, Plus, Minus, or Plus/Minus.

Currency

The currency that corresponds to the bank account specified in the purchase order.

Expiration date

The date after which the LC is no longer valid.

Place of expiration

The location where the letter becomes invalid.

Field

Description

Advising bank

Select the name of the vendor’s bank that interacts with the vendor on behalf of the buyer’s bank. By default, the name of the advising bank is displayed, based on the purchase order details.

Date of issue

Enter the date that the LC is issued by the bank.

Available with

Enter the name of the advising bank or its associate.

Field

Description

Partial shipment

Select one of the following options to allow or restrict the partial shipment of the purchase order items:

  • Not allowed – Restricts the partial shipment for the entire purchase order.

  • Allowed – Allows multiple shipments for the purchase order items.

Transshipment

Select one of the following options to allow or restrict the transshipment of the purchase order items:

  • Not allowed – The transshipment for the purchase order items is restricted.

  • Allowed – The transshipment for the purchase order items is allowed.

Port of loading

Enter the name of the port that the goods are shipped from.

Latest shipment date

Enter the last acceptable shipment date. Because an LC can cover multiple shipments, record details for each shipment.

Destination port

Enter the name of the destination port where the goods are received on behalf of the buyer.

Description of goods

Enter a description of the shipped goods.

Incoterms

Select one of the incoterms, including Blank, FOB, CFR, CIF, C&F, Ex-factory, or Others for the LC.

Documents required

Enter the associated documents that must accompany the shipment, according to the import LC.

Special instructions

Enter any special instructions that are applicable to the shipment.

Bank charges

Select one of the following options to determine how the cost of credit is managed:

  • Blank – None of the banks have agreed to bear the cost of credit.

  • Beneficiary – The vendor’s bank accepts the charges.

  • Applicant – The buyer’s bank accepts the charges.

  • Both – The buyer’s bank and the seller’s bank have agreed to share the charges.

Draft

Select one of the following options to indicate when the advising bank delivers the payment to the vendor:

  1. At sight – The bank delivers the payment when it receives the shipment documents.

  2. Acceptance – The bank delivers the payment after accepting and verifying the shipment documents.

Deferred days

The agreed number of days for which the payment can be deferred.

Period of presentation

Enter the number of days within which the beneficiary must submit the shipment documents to the bank to collect payment against the import LC or import collection.

Confirmation instruction

Select the confirmation status of the import LC or import collection. It can be Unconfirmed or Confirmed.

Additional information for issuing bank

Enter any additional information that must be communicated to the issuing bank.

Field

Description

Insurance status

Select one of the following options to indicate the insurance status for the import LC:

  • No insurance – There is no plan to insure the LC.

  • Not yet submitted – The LC needs to be insured, but no details have been submitted to the insurance provider.

  • Submitted – The LC insurance request has been initiated.

  • Advice collected – The insurance number has been received from the insurance provider.

Insurance vendor number

Select the insurance vendor’s number.

Insurance number

Enter the insurance number provided by the insurance vendor for the insured import LC.


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