L/G lifecycle

L/G lifecycle at a glance

An L/G lifecycle follows a letter of guarantee from its opening stage through approval, active use, return, and closure. Use the stage shown in the Stage column to choose the next permitted action.

mermaid
stateDiagram-v2
    state "Awaiting Approval" as AwaitingApproval
    state "Due for Return" as DueForReturn
    Draft --> AwaitingApproval: Request approval
    AwaitingApproval --> Approved: Approve
    Draft --> Active: Active
    Approved --> Active: Active
    Active --> DueForReturn: Due for Return
    DueForReturn --> Returned: Returned
    Expired --> Returned: Returned
    Returned --> Closed: Closed
    Active --> Liquidated: Liquidated
    Expired --> Liquidated: Liquidated
    DueForReturn --> Liquidated: Liquidated
    Draft --> Cancelled: Cancel
    Approved --> Cancelled: Cancel

The product uses the following stages.

Rejected Approval is a record stage, but it is not a filter in the list.

Before you start

An L/G stage action works on a saved record with no unsaved changes, and the available actions depend on your permissions and the approval process.

Prerequisites

• You have an existing L/G when you are moving a record through its stages.
• The record has no unsaved changes before you select a stage action.
• You can edit the record to use Save or Save and Close.
• You can create a new record to save a new L/G.
• You know whether an approval process applies and whether you can approve the L/G.
• You have the information needed for the fields shown on your screen. Requiredness for the basic L/G fields can be configured by your company.

The approval process and your approval permission determine whether Request approval or Approve appears.

Find an L/G

The L/G list is the finance worklist for finding records by view and stage. Use it when you need to open an existing L/G before taking a lifecycle action.

Prerequisites

• You have access to the finance L/G list.

Steps

1. In the finance navigation, select Bank Guaranties.

2. Select the list view that matches the records you need.

   If you need to…	Select
   See all L/G records	All
   See company L/G records	Company LGs

3. Select the stage filter that matches the work you need to review.

   If you need to review…	Select
   Records in any stage	All
   Records being prepared	Draft
   Records waiting for approval	Awaiting Approval
   Approved records	Approved
   Records in use	Active
   Records approaching return	Due for Return
   Expired records	Expired
   Returned records	Returned
   Closed records	Closed
   Cancelled records	Cancelled
   Liquidated records	Liquidated

4. Select a data cell in the row you want to inspect.

Result: The selected filter refreshes the list, and selecting a finance-list data cell opens the selected L/G record.

Understand the L/G screen

The list identifies each L/G by its number, parties, values, dates, job, stage, type, and increase amount. The record screen carries the L/G information, recommendation areas, stage dialogs, and follow-up areas.

The list contains these columns:

The list also has buttons titled Refresh, Table Layout, and Settings.

On the record screen, the basic L/G information includes Beneficiary, LG Issuer, On Behalf of, LG Type, Requested LG Value, Bank, LG Number, Activation Date, Issue Value, Cash Cover, and Expiry Date. Requiredness for these fields is controlled through the company’s L/G configuration, so a field is required only where your company configures it.

Recommendation areas can include Confirmation Of The LG Requirement, Comment, and Confirmation Of The Financial Viability. The extension, deduction, increase, return, and editing dialogs have their own fields, including Extension Period, Expiration date, Reason, LG Deduction Date, LG Deduction Percentage, LG Increase Date, LG Increase Percentage, LG Increase Reason, Return Reason, and Returned On.

Use the record areas Comments, Attachment, and LG Extensions to move to the corresponding follow-up area. Save changes with Save or save and leave the page with Save and Close.

Submit and approve an L/G

Submitting an L/G places it into the approval path when approval is configured; approving it records the approval decision. Activating it moves it into active use after the required checks pass.

Prerequisites

• You have a saved L/G with no unsaved changes.
• For approval actions, you know whether approval applies and whether you can approve.
• For Active, the L/G is Draft when no approval process applies, or Approved when one does apply.

Steps

1. Select the action that matches the L/G’s approval and current stage.

   Action	Select it when…
   Request approval	the L/G is Draft, approval applies, and you cannot approve it
   Approve	approval applies, you can approve, and the stage is before Approved
   Active	the L/G is Draft without approval or Approved with approval

2. Select the save action that matches where you need to go next.

   If you need to…	Select
   Keep the record open after saving changes	Save
   Save the changes and leave the page	Save and Close

Result: A successful save displays Your request was completed successfully. A failed save displays An error occurred while processing your request. A successful approval moves the L/G to Approved, and a successful activation moves it to Active.

Return, close, liquidate, or cancel an L/G

These actions close or end an L/G’s current business path. Choose the action that matches the stage shown in Stage; the action opens its validation dialog where the transition requires additional information.

Prerequisites

• You have a saved L/G with no unsaved changes.
• The L/G is in a stage listed for the action you need.
• You can provide the information requested by the action’s dialog.

Steps

1. Select the action that matches the L/G stage.

   Action	Use it when the L/G is…
   Due for Return	Active
   Returned	Due for Return or Expired
   Closed	Returned
   Liquidated	Active, Expired, or Due for Return
   Cancel	Draft or Approved

Result: The L/G moves to Due for Return, Returned, Closed, Liquidated, or Cancelled after the selected action’s validation checks pass.

Handle extensions and editing branches

An extension changes the usable period of an eligible guarantee, while editing lets you correct or complete information on an active or later record.

Prerequisites

• For Extend As Warranty Bond, the L/G is an Active or Expired Performance Bond that has not already been upgraded.
• For Enable Editing, the L/G is Active or later.
• You have no unsaved changes before opening the branch.

Steps

1. Select the branch that matches the L/G and complete the listed follow-up.

   Branch	Use it when…	Follow-up
   Extend As Warranty Bond	the L/G is an Active or Expired Performance Bond that has not already been upgraded	Enter the extension information, including Expiry Date when it is shown.
   Enable Editing	the L/G is Active or later	Update the fields shown, such as Bank, LG Number, Activation Date, and Expiry Date.
   LG Extensions, LG Deductions, or LG Increase	the corresponding follow-up action is available	Open the selected follow-up area.

Result: The applicable extension or editing dialog is open, or the selected follow-up area is active.

Fix errors and continue

Use the exact message on screen to decide whether to correct a value, obtain permission, complete confirmation, or edit a pending increase.

Continue after the lifecycle action

After a lifecycle action, the Stage column and the record stage show where the L/G now stands. Use that result to choose the next piece of work rather than repeating the previous action.

The follow-up areas Comments, Attachment, and LG Extensions remain available on the record when their conditions apply.

Result: You can confirm the resulting L/G stage and continue with the page that owns the next task.