Wednesday, October 10, 2018 Letter of credit in Dynamics AX 2012 and Dynamics 365 for Finance and Operations Letters of Credit in Dynamics 365 FO Letters of Credit (LC) in Dynamics 365 Finance and Operations are used to facilitate secure international trade transactions by guaranteeing payment to the seller once specific conditions are met. Key Features: Configuration: You can configure and process letters of credit within the system, ensuring all necessary details and conditions are met1. Types of LCs: Dynamics 365 FO supports various types of letters of credit, including import and export LCs2. Parties Involved: Applicant: The buyer who requests the LC. Beneficiary: The seller who receives the payment. Issuing Bank: The bank that issues the LC. Advising Bank: The bank that advises the LC to the beneficiary2. Process: Setup: Configure bank facilities and posting profiles for LCs3. Issuance: The buyer’s bank issues the LC. Shipment: The seller ships the goods and provides the required documentation. Payment: Upon verification of documents, the bank ensures payment to the seller2. Advantages: Security: Provides assurance of payment to the seller. Efficiency: Streamlines international trade transactions. Compliance: Ensures adherence to international trade regulations. Steps to Configure: Set Up Bank Facilities: Define the bank facilities and posting profiles required for LCs3. Create LC Agreements: Establish agreements with banks for issuing LCs. Process LCs: Manage the lifecycle of LCs from issuance to payment.
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