Letter of Guarantee

You can create a new letter of guarantee from “Bank Management” in Accounting from the navigation menu.

1.   Create a new “Letter of Guarantee” using the “New” button.

2.   A new letter of guarantee will be created.

3.   Specify the date and the duration of the letter of guarantee.

4.   Specify the description of the letter of guarantee.

5.   Choose a bank account for the letter of guarantee.

6.   The “Bank Balance” field will be updated automatically with the balance of the account. Specify the amount of the letter.

7.   Specify the currency of the letter.

8.   Choose an account for the letter of guarantee.

9.   Specify the expense amount and choose an expense account for the letter.

10.   The expiry date will be updated automatically according to the date and the duration.

11.   Save and post the letter and approve the warning message.

12.   You will have the option to either preform the letter by bank or specify that it got rejected by the bank.

13.   In case of rejection click on “Rejected by Bank” and approve the warning message.

14.   Specify the rejection date and the reason for the rejection given by the bank.

15.   The status will be updated to “Bank rejection” and the letter will be closed.

16.   In case the letter is performed by the bank click on “Performed by Bank” and approve the warning message.

17.   Specify the acceptance date.

18.   The status will be updated automatically to “Performed”.

19.   After the expiry date of the letter passes, click on “Close LG” to close the letter of guarantee and approve the warning message.

20.   The letter of guarantee status will be updated to “Closed” and its data will be turned into read-only.

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