ERPstuff - Oracle EBS Community

Dear All,

Please let me know how we can map the LOC functionality in the application. And also Promisory note functionality in AR.

Please update ..

Advance Thanks

Hi,

L/c Process


1. Raise a Purchase Order

Raise a Purchase Order in Oracle Purchasing stating the description of goods, quantity, unit price, and terms of delivery. Purchase order would be issued after beneficiary examined that all the terms and conditions of letter of credit are/can be complied with.
Letter of Credit number and/or other details can be tracked on Purchase Order with the help of DFF.

2. Record a Prepayment Invoice against Vendor

In case of confirmed sight letter of credit the confirming bank is obliged to honour the drawing without recourse to the beneficiary. Beneficiary (Seller) should present following documents to Advising / Confirming Bank:

Dr Advance to Supplier ****X Dr Goods in Transit
Cr Liability ****X Cr Liability


3. For Payment of the above Prepayment Invoice

Dr Liability ****X
Cr LC Payment Clearing Account ****X


4. Simultaneously, raise an Invoice against Bank to record the liability towards payment made by Bank to Vendor.


Dr LC Payment Clearing Account ****X
Cr Bank Liability ****X


5. Payment to Bank

Dr Bank Liability Account ****X
Cr Bank / Bank Clearing Account ****X


6. Receipt of Goods

On receipt of goods record a receipt transaction in Inventory Account

Dr Material Account ****X
Cr AP Accrual Account ****X


7. On receipt of Invoice from Vendor

Enter an Invoice in Oracle Payables & match it with Purchase order:

Dr AP Accrual Account ****X
Cr Liability Account ****X


8. Apply the prepayment against above Invoice

Dr Liability Account ****X
Cr Advance to Supplier / Goods in transit ****X

<b>Please Explain your Promissory note process</b>

Regards,
Anjireddy

Thank you so much Anjireddy.

I will update the Promisory note complete requirement and the functionality soon

How to update the Cost of the items received with any other expenses such as custom and transportation expense