Request for Letter of Guarantee
The request a department raises for a bank guarantee: for whom, for how much, for which period and under which kind of facility. A Letter of Guarantee is then made from it.
What it is for
It records what is needed before the bank is approached. It posts nothing.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Request No | The request number | Given on Create |
| Date | The request date | Required |
| Request Status | Where the request stands | Picked from the list. Recorded only |
| Notes | Free text | Optional |
Bank Facility
| Field | What it means | What to put |
|---|---|---|
| Facility Group | The group of facility | From Bank Facility Group |
| Facility Type | The facility | From Bank Facilities |
Value and Validity Details
| Field | What it means | What to put |
|---|---|---|
| Currency | The guarantee currency | Optional |
| Value | The guarantee amount | Optional |
| Date From, Date To | The period the guarantee must cover | Optional. Save refuses a Date From after the Date To |
Beneficiary
| Field | What it means | What to put |
|---|---|---|
| Beneficiary Type | Customer or vendor | Required. Starts as Customer |
| Beneficiary no | The customer or vendor in whose favour the guarantee is given | Required. The lookup follows the Beneficiary Type. Changing the type clears it |
| Beneficiary name | The name | Fills from the lookup |
Responsibility and Assignment Details
Responsibility Central and Responsible; Business Area, Business Unit and Project. All optional, for reporting.
The Schedule tab shows repayment and interest fields that are not set up on this screen and do not appear.
How to configure it
The screen allows Create, Edit and Delete. Default values per company come from Cash Bank Setting.
Scenarios
- A contractor bids for a government tender that asks for a bid bond. The tender team raises the request with the customer as beneficiary, the value and the bid validity dates. Treasury then makes the Letter of Guarantee from it.
What it is connected to
- Letter of Guarantee - picks the request and copies its details.
- Lists and reports - the Request For Letter Of Guarantee list.
If something looks wrong
- "Date From cannot be greater than Date To." Correct the period.