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Bank Guaranties

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2 min readUpdated

User Guide › Financial › Bank

L/Gs — Financial › Bank Guaranties

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

  1. Navigate to Financial > Bank Guaranties.

    The L/Gs register opens.

  2. 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.

  3. Use Select to choose the L/G that requires review or action.

  4. 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.

  5. 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

SymptomLikely causeFix
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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Bank Guaranties — Pams V2