Customer Letters of Credit

A letter of credit (LCR) is a document from a bank stating that the bank will insure the customer's payment. The customer either deposits money with the bank, or the bank extends them credit; but the bank guarantees payment to you. Many vendors in Asia and some European countries require letters of credit.

On the Customers form, you can specify whether you require an LCR for the customer. On the Customer Orders form, you can enter the customer's LCR number. The system ties the LCRs to customer orders. The available amount remaining on an LCR affects whether you can enter and ship orders to the customer. See the topic How LCRs Affect Customer Orders for more information.

The LCR number prints on invoices, credit/adjustment forms, CO order verifications, bills of lading, pick list and pack slips.

Note:  LCRs link to only one customer, though corporate customer functionality is still available when checking credit. In the Customers area of the system, letter of credit authorizations are the same as in the Accounts Receivable area.
Caution: LCRs are not available for multi-site orders.
Related topics
Creating a Customer Letter of Credit
Linking a Customer LCR to Customers and Orders
How Letters of Credit Affect Customer Orders
Vendor Letters of Credit