How Letters of Credit Affect Customer Orders

The list below describes the situations in which customer Letters of Credit (LCRs) affect customer orders.

• LCRs tie customer orders to customer LCR records when an LCR is assigned to the order.
• LCRs track the accumulated order and shipped value of all orders tied to each LCR.
• Like payments, you can enter customer LCRs in the customer's currency or the base currency.
• The system marks the customers from whom you require a letter of credit before shipping orders.
• The system issues a warning when you enter or change an order:
  • That causes the accumulated order amount (on a line level) for the LCR to exceed the original LCR.
  • If an LCR is required and you have not entered one.
  • If the line item due date you entered is later than the LCR expiration date.
• The system stops order shipment to a customer if the Customers form indicates you must use an LCR, and at least one of the following is true:
  • The order LCR has passed its expiration date as compared to the line's ship date.
  • The combined value of the current shipment and the previous shipment against the LCR exceeds the LCR original amount.
  • There is no LCR tied to the order.
• During shipment, the system warns you if a customer does NOT require LCRs but optionally uses them, and at least one of the following is true:

• The line item due date is later than the LCR expiration date.
• The combined value of the current shipment and the previous shipment against the LCR exceeds the LCR original amount.