Letter of Credit

Getting started...  

Create Letter of Credit Fund and Letter of Credit Fund Groups

Once Letter of Credit Fund Groups are created to represent the different LOC entities, you will create a Letter of Credit Fund for each LOC award. 

• The LOC Fund Group links awards from the same LOC Fund Group together, so they can all be selected at one time using the Contracts & Grants LOC Review in order to generate invoices.  

Associate the Award with the appropriate Letter of Credit Fund

Prep data to facilitate running the LetterofCredit batch job

The letterOfCreditJob will create Cash Controls and Payment Applications to apply payment to LOC Invoices. 

The following parameters need to be updated with a valid Processing Chart and Organization, set up in the System Information table. 

• DEFAULT_PROCESSING_CHART
• DEFAULT_PROCESSING_ORG

Payment Medium WT must be active. When the Cash Control is created, the payment medium used is WT. 

Contracts & Grants LOC Review

Presents a means for reviewing draw amounts for letter of credit awards, prior to creating Contracts & Grants invoices and payment transactions for those awards.

When you select Contracts & Grants Letter of Credit Review from the menu, the system displays the Contracts & Grants LOC Review Initiation tab.

 

Select from either the Letter of Credit Fund Group drop down or the Letter of Credit Fund. The Letter of Credit Fund Group links Awards from the same LOC entity in order to create invoices for all the awards associated with a single LOC entity. 

Click Continue to open the Contracts & Grants Letter of Credit Review document. The two tabs unique to this document are the General tab and the Award Accounts tab. 

General Tab

The General tab displays the Letter of Credit Fund Group or Letter of Credit Fund Group Code that was selected on the initiation screen. 

Award Tab

The Award tab displays information about the LOC awards that are associated with the selected Letter of Credit Fund Group or Letter of Fund Group Code. The only editable fields are the Claim on Cash Balance. Click the "show" button to display this field. 

The Claim on Cash Balance is equal to the amount of expenses that have posted to the account less any invoices that have been previously billed. The Amount To Draw can be reduced and the recalcluate button will update the Funds Not Drawn to reflect the difference between Claim on Cash Balance and Amount to Draw. The Amount to Draw cannot exceed the Claim on Cash Balance. 

The Awards can be exported into a spreadsheet and can be printed using the Export and Print buttons. 

Submit creates Contracts & Grants Invoices. If the Awards are set to Auto Approve and there are no Suspension categories, the invoices will go to Final. Otherwise, they will route to the Fund Managers for resolution. 

Post Processing

The letterOfCreditJob will create a Cash Control and Payment Applications for all Final LOC invoices. The Cash Control routes for approval and is approved once the LOC deposit has posted to the bank. Bank offsets are created if the bank offset functionality is turned on. 

Letter of Credit Draw Report

Allows you to search for or print two reports pertaining to letter of credit draws.

The Report Type toggle is used by the Print button to determine which report to generate:

• The Amounts Not Drawn Report displays Letter of Credit Review documents where the amount drawn was drew less than the full amount available to draw.
• The Detail Report displays all Letter of Credit Review documents.

Enter the appropriate filters.

• Click Search to view the matching results, export to spreadsheet if desired. 
• Select a Report Type and click Print to create a pdf report of the matching results.