User Guide › Financial › Bank
Overview
Use the Bank Guaranties register to review and manage L/Gs (letters of guarantee) used in financial operations. Finance officers use this register to locate an L/G, review its beneficiary, issuing bank, and values, and follow its progress through approval, running, return, and closure activities.
An L/G moves through the lifecycle from approval handling to Approved, Running, Returned, and Closed. It can also leave the normal lifecycle through rejected approval, cancellation, liquidation, or expiry.
Before you start
- You must have access to Financial > Bank Guaranties.
- Have the L/G number, beneficiary, or issuing bank details available to help locate the required record.
- Where an L/G is awaiting manager approval, the manager must complete the approval action before the L/G can continue through the approval process.
Steps
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Navigate to Financial > Bank Guaranties.
The L/Gs register opens.
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Locate the required L/G in the register. Review the available information, including L/G no., Benificiary, L/G issuer Bank, Requested value, Issued value, and Curre.
To narrow the register, enter identifying information in the Search box.
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Use Select to choose the L/G that requires review or action.
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When an L/G must be treated as not approved, select Consider as not approved.
Use this action only when the L/G should no longer be handled as approved. An L/G that has one or more extensions or deductions cannot return to its initial requested condition.
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Monitor the L/G through its business lifecycle:
- An L/G proceeds to Awaiting Approval when approval is still required.
- An approved L/G proceeds to Running for its active period.
- After the guarantee has been returned, it becomes Returned and can then be Closed.
- An L/G may instead become Cancelled, Liquidated, or Expired, depending on the applicable business action.
Warning: Do not use Consider as not approved as a way to reverse an L/G with extensions or deductions. Such an L/G cannot return to its initial requested condition.
Note: If editing is enabled for an Offer, the Offer must be approved again.
Troubleshooting
| Symptom | Likely cause | Fix |
|---|---|---|
| The L/G cannot continue through approval processing. | The related Offer has not been approved. | Complete approval for the Offer before continuing. |
| Approval is still pending. | The Offer is awaiting approval from the manager. | Have the manager complete the approval action. |
| Related Order processing cannot continue. | The Order has not been accepted and confirmed. | Ensure that the Order is accepted and confirmed first. |
| The L/G cannot return to its initial condition. | The L/G has one or more extensions or deductions. | Continue managing the L/G from its current lifecycle position. |
Result
You have located the required L/G, reviewed its financial details, and applied the available approval-related action where required.
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