Creating and Approving a Letter of Credit (LC)

This document provides a detailed, step-by-step process to create a Letter of Credit (LC) using the Zinto platform, including submission for approval and understanding the various levels of approval required.

Step 1

Log in to the Zinto platform using your network mail ID to begin the process of creating a Letter of Credit (LC).

Step 2

Upon logging in through the Single Sign-On (SSO) system, locate the "Requests" tab. This tab is visible only to users with the LC creator role.

Step 3

Select the entity for which you wish to create an LC. For example, choose "Zetwerk Manufacturing Private Limited."

Step 4

On the top-right corner, click on "Create Draft LC Request."

Step 5

Begin by selecting the primary order number from the available options.

Step 6

Choose an order from the dropdown list that aligns with your requirements.

Step 7

Enter details such as the applicant's name and address, the beneficiary's name and address, and any secondary order numbers if needed. Add multiple addresses and orders within a single LC if necessary. Specify the business unit and sub-business unit.

Step 8

Enter the beneficiary bank's name, address, and IFSC code. For instance, use "SBI" as an example.

Step 9

Once all details are entered, proceed by clicking "Next."

Step 10

Fill in all necessary details, including the LC data for TA. Ensure you complete all fields marked as compulsory to successfully create a request.

Step 11

Review the entered details, including the expected first delivery date, LC usance period, interest rate, and additional information.

Step 12

Specify details such as LC value, OR and OLC value, last shipment date, expiry date, and LC amount.

Step 13

If applicable, indicate any tolerance levels and the availability of the bank.

Step 14

You may add options for supplier bank discounting or choose Zetwerk bank discounting or any other bank.

Step 15

This step assists in specifying the expected last delivery date. For instance, choose "30th."

Step 16

Specify the dispatch location, transportation destination, and transaction type, whether full or partial. Choose "Allowed" but note that partial shipment is not permitted. Click "Next."

Step 17

Incorporate any bank charges and provide a description in the goods description field. Attach any underlying documents as needed.

Step 18

Fill in the necessary fields, including incoterm and extension of goods description, and select options such as free carrier or carriage to the delivery place.

Step 19

For illustration purposes, choose the "Export" option.

Step 20

Upon completing all details, you have the option to "Save as Draft" or "Send for Approval." Saving as a draft allows you to edit later. For now, proceed with sending for approval.

Step 21

After clicking "Approval," a confirmation pop-up will appear to verify your intention to send the request for approval.

Step 22

Confirm by clicking "Submit."

Step 23

The draft LC request is created and saved. Two confirmation screens will appear. Once created, you can view the "Approval Z" tab.

Step 24

Check the status of the LC request, including its creation date, current status, and assigned approver.

Step 25

Review the list of approvals based on LC amount and interest charges. Approval categories include high, medium, and low, with four levels of approvers: first, second, treasury, and controllership.

Step 26

Approvers with roles such as "LC Request Approver One" have the authority to approve. An "Edit" option allows changes to certain fields.

Step 27

Editable fields are not grayed out and can be modified as needed.

Step 28

Approval stages allow for further editing before sending again for approval. This feature is accessible at each stage.

Step 29

This completes the process of creating and approving an LC.