Configuring Guarantee Facilities

Confirm Access and Gather Facility Details

Before you add or change an LG Facility, confirm that your Pams user account can open Configuration and LGs facilities. This area is intended for users who maintain finance configuration and control which facilities are available when colleagues prepare LG records. If you cannot see LGs facilities, ask the person who manages users, roles, or finance configuration in Pams to confirm your access.

Gather the confirmed bank agreement details before entering anything. Do not create a facility from an unconfirmed request, an informal email, or an estimated limit. The facility record should match the agreement issued by the bank or financial institution.

Prepare these details:

Confirm whether the bank agreement is currently available for new LG requests. A facility may exist in Pams for history and reporting even when it must no longer be used for new guarantees. Record it as available only when the agreement is valid and approved for use.

Make sure the issuing bank exists in Pams before creating the facility. If you need to add or review bank details first, use Configuring Banks and Accounts. Keep the bank name and facility reference consistent with the approved agreement so users can reliably select the right LG Facility later.

Open the Guarantee Facilities Register

Use the LGs facilities register to review existing facilities before creating a new one. Checking the list first prevents duplicate records for the same bank agreement and helps you see which facilities are already available to your company.

1. In Pams, open Configuration.
2. Select LGs facilities.
3. Review the facility list before choosing any action.
4. Use the available search or list tools to look for the bank name, facility name, or facility reference number.
5. Select an existing record when you need to review or update it.
6. Select New only when no matching facility already exists.

As you review the list, compare the visible facility details with the information in your bank agreement. Focus on the issuing Bank, Currency, current availability, approved limit, and Expiry Date. When similar facilities exist, the reference or agreement number is especially important. The same bank may provide separate limits for different companies, currencies, or guarantee arrangements.

Open an existing facility rather than creating another one when the bank has renewed, increased, reduced, or extended the same agreement. Keeping one facility record current preserves a clear history and avoids giving users multiple choices for the same facility.

If a facility record has expired or is no longer available, leave it in the register for reference. Existing LGs may still be connected to it, and finance users may need the record when reviewing previous guarantees. Do not rely only on the facility name; check the bank, currency, Company, and dates before deciding whether it is the correct record.

Create a Guarantee Facility

Create a separate LG Facility for each approved bank agreement that must be available for Letters of Guarantee. Use the details exactly as confirmed by the issuing bank and the company responsible for the facility.

1. From Configuration > LGs facilities, select New.
2. Enter a clear Name or Description. Include enough detail for users to distinguish this facility from other facilities at the same bank.
3. Select the issuing Bank or financial institution.
4. Enter the facility reference or agreement number supplied by the bank.
5. Select the correct Currency.
6. Enter the approved facility limit from the bank agreement.
7. Set the Start Date and Expiry Date for the agreement period.
8. Select the applicable Company.
9. Set the facility to Active only if it is approved and available for new LG requests.
10. Select Save or Save and Close.

The approved facility limit is the total amount the bank has made available under that agreement. When a user enters a requested LG value, Pams uses the facility details to help identify whether sufficient capacity remains. Enter the approved figure carefully and in the same currency as the bank agreement.

Use names that make day-to-day selection straightforward. For example, distinguish facilities by bank, company, currency, or agreement reference where those details are needed to tell records apart. Avoid vague names that force users to open several records before finding the correct facility.

Do not combine separate bank agreements into one facility record. If the bank has granted different limits for different currencies, companies, or guarantee programs, create a separate record for each agreement. This gives finance users a clear view of the correct limit and Expiry Date for each LG Facility.

Set Availability and Usage Controls

An LG Facility should be marked Active only while it can be selected for new Letters of Guarantee. This control keeps outdated, expired, or unavailable bank agreements from being used accidentally during an LG request.

1. Open the facility in Configuration > LGs facilities.
2. Check the issuing Bank, Currency, Company, approved limit, and Expiry Date.
3. Confirm with the bank agreement that the facility is available for new LGs.
4. Set the facility to Active when it is valid and approved for use.
5. Remove its active availability when the agreement has expired, been withdrawn, or must not be used for new requests.
6. Select Save to keep the updated status.

Keep inactive or expired facilities in Pams when they are connected to LGs already issued. Removing the record would make it harder to review historical guarantees, identify the original bank agreement, or understand previous facility usage. Instead, prevent new use while retaining the facility for reference.

Where the LGs facilities register shows usage details, review the approved limit, the amount already committed to guarantees, and the remaining available amount. A facility can be active but still have insufficient remaining availability for a new LG request. This review is particularly important when several guarantees use the same bank agreement.

Create separate facility records when a bank provides distinct limits by Currency, Company, or guarantee arrangement. Do not place separate limits into one record merely because they come from the same bank. Separate records help users select the correct facility and reduce the risk of treating one agreement’s limit as available under another agreement.

Maintain Existing Facility Limits and Expiry Dates

Maintain each LG Facility whenever the issuing bank formally changes the agreement. Typical changes include a limit increase, a limit decrease, an extension of the agreement period, or a decision to stop using the facility for new guarantees.

1. Open Configuration > LGs facilities.
2. Search for and select the required facility using its bank name, facility name, or reference number.
3. Review the current Bank, Currency, Company, approved limit, active availability, and Expiry Date.
4. Compare the record with the latest approved bank agreement.
5. Update the approved limit only after the bank has confirmed the increase or decrease.
6. Update the Expiry Date only after the underlying agreement has been renewed or extended.
7. Remove active availability if the facility must no longer be selected for new LGs.
8. Select Save or Save and Close.

Preserve the original issuing Bank and facility reference when the change applies to the same agreement. Updating the existing record keeps the facility connected to its historical LG activity. Create a new record only when the bank has issued a genuinely separate facility or agreement.

Before reducing a limit, review the facility’s current committed guarantees and remaining amount. A reduced limit may affect whether future LG requests can use the facility. Likewise, do not extend an Expiry Date simply because an LG itself needs more time; extend the facility date only when the bank agreement supporting the facility has been extended.

When a facility is no longer available, retain the record and disable its active use rather than deleting it. Historical Company LGs or Principal LGs may still need to show the facility that supported them when they were created.

Verify the Facility Can Be Used for a Letter of Guarantee

After saving an LG Facility, verify that users can select it on the relevant draft LG record. This check confirms that the facility’s Company, currency, active availability, dates, and limit are aligned with the guarantee request.

1. Open the appropriate draft LG record from Company LGs or Principal LGs.
2. Locate the LG Facility selection field.
3. Open the list of available facilities.
4. Confirm that the facility you created appears in the list.
5. Select the facility and review its Bank, Currency, and available amount against the draft LG.
6. Enter or review the requested guarantee amount.
7. Confirm that the facility has enough remaining available amount for the requested LG value.
8. Save the draft only after the facility selection and amount are correct.

Use the same Company and Currency on the LG request as on the LG Facility. An active facility that belongs to a different company or uses a different currency may not be appropriate for the request. Also check the facility’s Expiry Date against the date on which the new LG is being prepared.

If the facility does not appear, return to Configuration > LGs facilities and check these points:

• The facility is marked Active.
• The Expiry Date has not passed.
• The selected Company matches the LG request.
• The Currency matches the LG request.
• The approved limit and remaining available amount can support the requested LG value.
• The issuing Bank and facility reference identify the intended agreement.

Do not choose another facility solely because it appears in the list. Confirm that it is the correct bank agreement for the requested guarantee before continuing.

Overview

An LG Facility in Pams records the approved bank or financial-institution arrangement that supports Letters of Guarantee. It gives finance users a controlled way to identify which bank agreement may be used when creating an LG and to review the limit, currency, Company, and validity period behind that agreement.

The facility record is separate from an individual LG. One facility may support multiple guarantees, provided each request is within the facility’s approved limit, uses the correct currency and Company, and falls within the agreement’s valid dates. The LG record then identifies the specific guarantee being requested or issued, while the LG Facility identifies the approved funding arrangement behind it.

Use Configuration > LGs facilities to maintain the list of available facilities. Use Company LGs or Principal LGs when preparing the individual guarantee record and selecting the appropriate LG Facility.

A well-maintained facilities register helps prevent several common operational problems:

• Selecting an expired bank agreement for a new LG.
• Using a facility assigned to the wrong Company.
• Requesting a guarantee in a currency not covered by the facility.
• Treating a committed amount as though it were still available.
• Creating duplicate records for the same bank agreement.
• Losing visibility of facilities that supported existing LGs.

Keep the record focused on the bank agreement itself: its identification, approved limit, currency, Company, dates, and active availability. Update it when the bank formally changes the agreement, and retain it when it has historical LG activity. This provides a clear basis for reviewing current capacity and previous guarantees without mixing separate agreements together.

Prerequisites

Before maintaining LGs facilities, make sure you have the confirmed business information needed to create an accurate facility record. The facility should be based on an approved agreement from the issuing bank or financial institution, not on a planned request or an unconfirmed value.

Prepare the following before opening Configuration > LGs facilities:

• Access to Configuration and LGs facilities in Pams.
• The correct issuing Bank already available for selection. Review Configuring Banks and Accounts if the bank details need to be created or corrected.
• The facility name or clear Description that users will recognize in the LG Facility selection list.
• The bank’s facility reference or agreement number.
• The approved limit and the correct Currency.
• The applicable Company that is authorized to use the facility.
• The agreement’s Start Date and Expiry Date.
• Confirmation that the facility is available for new LG requests before setting it to Active.

For changes to an existing record, have the latest bank-approved document available before you edit the approved limit or Expiry Date. This is especially important when increasing a limit or extending an agreement. Keep the same facility reference and issuing Bank when the change is an amendment to the existing agreement.

If the bank has separate agreements for different companies, currencies, or guarantee arrangements, prepare the information for each one separately. Each agreement needs its own LG Facility record so Pams can present the correct option when users create Company LGs or Principal LGs.