define a bank guarantee?

[kuhu4050]

Dear All,
Hi,

I'm looking for help to define a bank guarantee??? Anybody help to define and know the setup, use, with practical senario with the details of which modules involve.
Looking for fast reply.


Kuhu

[Dhananjay]

Description of Process: As per SO terms, customer would open BG. On dispatch of material and submission of sales invoice, customer as per payment terms would make the payment. BG needs to tracked and closed after payment by the customer. If supplier invokes BG, then payment is made by the bank. The amount is credited to supplier accordingly. The same needs to be accounted and tracked.

<b>Mapping to Oracle Apps:</b>

?The Bank Guarantees given by the Customer would be entered as Commitment (Guarentee).
?Enter commitment - Create a guarantee
?Offset against Invoice - Enter invoices against the deposits and guarantees and apply the commitments against the invoice.

Receivables automatically create the adjusting accounting entries.

Regards
Dhananjay

[kuhu4050]

Dear Dhananjay,
Hi,

Thanx for ur immediate reply. Can u help me with enteries as well as any example. How it is possible in AP??

Thanx in Advance.

Kuhu