How Does the Letter of Credit Process Work ?

How Does the Letter of Credit Process Work?


The seller (known in the Letter of Credit as the "Beneficiary") advises the buyer (known in the Letter of Credit as the "Applicant") that the purchase order is acceptable. The Beneficiary also sends the Applicant a copy of their "Letter of Credit Guidelines" to ensure that the credit is opened properly and will not require any costly amendments.

A Letter of Credit Application is completed by the Applicant and is submitted to their Bank (the Opening Bank).

The Letter of Credit is issued and sent by the Opening Bank to an Advising Bank in the country of the Beneficiary. The main role of an advising bank is to check the authenticity of the Letter of Credit before it is advised to the Beneficiary.

The Advising Bank then sends a copy of the Letter of Credit to the Beneficiary, either electronically, by fax, or by mail.

The Beneficiary must now carefully review the requirements of the Letter of Credit to ensure it has been issued per the agreed terms. The Beneficiary should make sure that they can comply with all stipulations, such as shipping terms, documentary requirements, shipping and/or expiration dates and packing and marking conditions.

If the Letter of Credit has terms that are not per the agreement, the Beneficiary should request an amendment to the Letter of Credit. This request is made directly to the Applicant, who then instructs the Opening Bank to amend the Letter of Credit.

Once the Letter of Credit is in order and the shipment is ready for export, the Beneficiary ships the goods to the freight forwarder.

The seller (or third party, such as LC Solutions) can now begin preparation of documentation required under the Letter of Credit terms.

After goods have shipped, the transport document is acquired by the Beneficiary (or LC Solutions), is checked for accuracy, matched up with other created documentation, and presented to the Negotiating Bank. (The Negotiating Bank may or may not be the same as the Advising Bank, depending on the requirements of the Letter of Credit and the wishes of the Beneficiary.)

The Negotiating Bank checks over the documentation and advises any problems they may find with the paperwork. They then either issue payment to the Beneficiary, or forward the documents to the Opening Bank for payment, depending on the terms of the Letter of Credit.

Who will provide my ERP training?

The best Partners have dedicated, experienced people focused on training.

Take note : a highly skilled implementation consultant does not always make a good trainer!


Ask to meet the trainer or to audit a training session so you can evaluate the quality of the training.
 
for me, i will prefer a consultant with accounting knowledge, so we can communicate the same level.
 
Vivienna from erp2u.com

Fixed asset Declining Balance Depreciation Method

I love professor Crosson,because her illustration is excellent ! easy to understand.
i will recomended the same to people that wanted to know more on Fixed asset Declining Balance Depreciation Method

What training is included in the quote for which modules or parts of the system?

Make sure your Partner includes sufficient training in their quote or it may cost you more money in support down the road.

You will also deal with the immeasurable cost of frustrated and unproductive users.

Vivienna from erp2u.com

List of Forms used under Sales Tax Act Malaysia

Below is the List of Form used under Sales Tax Act Malaysia.

JKED 1 - Application for Sales Tax License

JKED 2 - Application for Drawback/Refund

JKED3 - Sales Tax License

CJP1 - Sales Tax Return

Cukai Jualan 5 - Application to import/purchase materials and components free of sales tax for use in manufacturing

Cukai Jualan 5A-Application to import/purchase materials and components free of sales tax for use in manufacturing


Cukai Jualan 5B-Application by a licensed manufacturer to deliver goods to another licensed manufacturer and to acquire back such goods.

Cukai Jualan 6-Application for Exemption from licensing

Cukai Jualan 7-Certificate of Exemption from licensing

Cukai Jualan 10-Declaration by Licensess to claim sales tax deduction

Vivienna from erp2u.com