Letter of Credit Checklist Template
The CFO should be responsible for creating and maintaining the Letter of Credit Checklist Template, which lists the requirements for accepting a Letter of Credit for deliverables, or for creating a Letter of Credit for purchases. The CFO or other Department Manager (i.e. Sales, Operations) should use the TM1070-1 LETTER OF CREDIT CHECKLIST to ensure that the terms of the sale are clearly listed and agreed upon between the buyer and seller, including:
- Part numbers;
- Descriptions and nomenclature;
- Payment terms;
- Ship date, mode of transport, and delivery date; and
- Expiration date of the Letter of Credit.
The CFO or Department Manager should use the checklist to ensure that the required documents needed to complete the Letter of Credit are clearly listed and agreed upon between the buyer and seller. The CFO should approve the use of the Letter of Credit and ensure that TM1070-1 is employed each time the company uses a Letter of Credit as a buyer. If the company is the buyer, the CFO, purchasing manager, or appropriate department manager (acting as the buyer) should collect the necessary information from the seller to complete the checklist.
When the Letter of Credit Checklist Template is complete and all terms/documentation is agreed upon between the company and the seller (and the Letter of Credit draft is reviewed and approved as required), the CFO or other authorized Finance/Accounting Department manager should create the Letter of Credit with the selected issuing bank. The CFO should, as a result of the review of the Letter of Credit process and of TM1070-1 LETTER OF CREDIT CHECKLIST, including investigating root causes for delays or other problems, modify the policy, procedure, and/or TM1070-1, as needed, to improve timely and efficient execution of a Letter of Credit.
Letter of Credit Checklist Template Details
Format: Microsoft Word 2013 (.docx)
Category: Treasury Management
Procedure: Letters of Credit Procedure TM1070
mohamed fouad (verified owner) –
Ar Riyāḑ, Saudi Arabia