Skip to content
D
Documentation

Letters of Guarantees

guide
3 min readUpdated

Applications › Finance

Letters of Guarantees

Overview

Use Letters of Guarantees (L/Gs) to record a guarantee request, including its beneficiary, issuer, responsible party, type, and requested value. Finance users use these records when a financial or contractual guarantee must be documented and retained with its supporting files. Access the feature from Finance > L/Gs.

Workflow

  1. Start a new L/G record.
    Open Finance > L/Gs and open the new L/G form.

    Letters of Guarantees
  2. Record the guarantee details before saving.
    Complete the fields that identify the L/G:

    • Beneficiary: enter the party receiving the benefit of the guarantee.
    • L/G Issuer: enter the issuing party.
    • On Behalf of: enter the party for whom the guarantee is requested.
    • L/G Type: select or enter the guarantee type.
    • Requested L/G Value: enter the requested guarantee value.

    Note: Review the beneficiary, issuer, and requested value together before saving. These fields form the core identification of the L/G record.

  3. Decide whether to attach supporting documentation.
    If you need to retain a document with the L/G, select Attach, then use Select to choose a file. You can also add a file by using or Drop a file here.

  4. Choose how to finish the record.

    • Select Save to save the L/G and continue working in the form.
    • Select Save and Close to save the L/G and close the form.
    • Select Don't Save if you decide not to retain the entered information.

    Tip: Use Save when you still need to review the record or add an attachment. Use Save and Close when the L/G details are complete.

Examples

A purchasing officer needs to document a guarantee requested for an externally sourced buyout.

  1. Open Finance > L/Gs and start a new record.
  2. Enter the following information:
    • Beneficiary: Northstar Construction Ltd.
    • L/G Issuer: Meridian Bank
    • On Behalf of: Apex Trading Co.
    • L/G Type: Performance Guarantee
    • Requested L/G Value: 50,000
  3. Select Attach, use Select, and add the supplier’s guarantee request document.
  4. Select Save and Close to retain the completed L/G record.

The L/G is then available in Finance for reference with its recorded parties, type, value, and attached supporting document.

Tips

Tip: Use a consistent naming approach for beneficiaries and issuers so that L/G records are easier to recognize when reviewing finance information.

Note: Attach the supporting request or related document while creating the L/G record to keep the financial record and its evidence together.

Warning: Selecting Don't Save discards the information entered in the current form.

Troubleshooting

SymptomLikely causeFix
The L/G record is not retained after leaving the form.The record was not saved, or Don't Save was selected.Reopen the new L/G form, enter the details, and select Save or Save and Close.
A supporting document is not attached to the L/G.A file was not selected or dropped into the attachment area.Select Attach, then Select a file, or use or Drop a file here.
The L/G details need further review after entry.The record was saved but requires additional checking.Keep the form open by selecting Save, then review Beneficiary, L/G Issuer, On Behalf of, L/G Type, and Requested L/G Value.

Was this page helpful?

Download as PDF
Letters of Guarantees — Pams V2