Hi
All,
One
of the very good features introduced in AX 2012 R2 is Letter of Guarantee or Bank
Guarantee.
Organizations which are into PROJECT EXECUTION, usually gives performance
Bank Guarantee (PBG or BG) to their customers.
BG is for total value of contract and it is given to the customers upon
receiving certain percentage of advance from them.
BG
can be cancelled upon successful completion of the project or its value can be decreased after achieving a certain milestone or it can be liquidated by the customer
if the project is not completed.
Let us dive into BG configuration…
STEP 1:
Request letter of guarantee from Projects module
>>In project
details form, Select Bank document Type as Letter of guarantee & Click
Letter of Guarantee on Action Pane
>>Letter of Guarantee form > click ‘Request’, to
request letter of guarantee for the specific project
>> Select type, value, expiration date of letter of
guarantee.
>>Letter of Guarantee form with status as requested
STEP2:
Submit letter of Guarantee request to Bank from Bank Management Module
>> Cash and bank Mgmt > Common > Letter of
guarantee
>> Click submit to bank
>>Select Bank Account, Facility Type & Facility
Agreement
STEP 4:
Receive Letter of Guarantee
>> Status is changed to ‘Submitted to bank’
>>Click ‘Receive from Bank’ when letter of guarantee is
received from bank
>> Margins & expenses are calculated based on the
Facility agreement setup or fixed amounts can be given here
STEP 5:
Give Letter of Guarantee to beneficiary
>>Projects Module >> Project Details >>
Letter of Guarantee
>>Status is changed to
‘Received from Bank’
>>Go to Cash & Bank Mgmt Module>>Letter of
guarantee >> Give to Beneficiary
>> Status is changed to ‘Request give to beneficiary’
>>Click ‘Give to beneficiary’ to give it to your
customer
STEP 6:
Decrease Letter of Guarantee
>> We can Increase value or Decrease Value or Extend or
Cancel or Liquidate letter of guarantee
>> Status is ‘Given to beneficiary’
>> Let us assume, we have completed 50% of work and
according to our agreement we can reduce the bank guarantee to 50% of its
original value
>>Projects >> Project Details >> Letter of
Guarantee >> Decrease Value
>>Cash & Bank Mgmt Module >> letter of
Guarantee>> Decrease value
>> Status is changed to request decrease value
>> Fill in the amount that needs to be deducted from
the original Letter of guarantee
>> Status had changed to ‘Request Decrease’
>> Status changed to ‘value decreased’
>> We can see the reduced value in value field
>>Projects>>Project details>>Letter of
Guarantee
>>We can see the new value for letter of guarantee
STEP 7:
Cancel Bank of Gurantee
>> We have completed the project, and we would like to
cancel the letter of guarantee
>> Projects>Project details>Letter of
Guarantee>Cancel
>> Give Cancellation Reason
>> Status is changed to ‘Request Cancel’
Hope above information is helpful,,
:) :)
Thanks
Sathish Reddy
