When letters of credit are generated, they can have either Accepted or Unaccepted status. A letter of credit with Unaccepted status has been sent to a customer but has not been accepted by the customer. Accepted letters of credit have been signed and returned by the customer indicating that the amount shown on the letter will be paid.

How to Accept a letter

1. Letters of credit generated with Unaccepted status can be given Accepted status using the option Accept Letter (cm_accept_letter or sl_accept_letter) when the signed letter is returned by the customer.

   Only letters of credit with Unaccepted status can be accepted. Once it has been accepted, the status of the letter of credit is changed to Accepted and its acceptance date is updated with today's date. The status of the corresponding open item is also changed to Accepted. The change in status of the letter of credit is recorded on the Letters Audit Trail file and the CMLETTPOST system key is set to YES.

2. Letters can be generated with Accepted status when signature by the customer is not necessary, or when agreement has been made in advance.

Amending Letters

Letters of credit with Accepted or Unaccepted status can have their customer reference, bank details and due date changed using the Amend Letter option. This option can also be used as an enquiry for letters of credit with any status.

Combining Letters

A number of accepted or unaccepted letters can be combined together to form one letter of credit using the Letter Combination option, although all the letters to be combined must have the same status. Within this option, letters of credit can also be combined with invoices held on the Accounts Receivable Open Item file.