How to enter a Guarantee

Created by Erik Åkerlund, Modified on Mon, 20 Feb 2023 at 02:30 PM by Erik Åkerlund

  1.  Go to Deal input and choose Guarantee  
  2. Name is a free text field that you can choose to use
  3. Applicant is the party that needs the guarantee ( must be an legal entity in Treasury systems)
  4. Guarantor is the party that guarantees to fulfill the commitment (must be an counterpart in Treasury Systems)
  5. Beneficiary is the beneficiary of the guarantee, free text field, could be a bank or a supplier optional to use
  6. End date, if there is no end date you can type MAX as date code      
  7. If there are fees linked to the guarantee you press Add deal and add a calculated fee (if the fee is a percentage) or recurring fee if the fee is a fixed amount.  

No account or payments are generated on the guarantee itself. Note! No accounting rule for guarantees needs to be set up in order to avoid errors in accounting view.

It is possible to set up templates of guarantees and select all commonly used settings. It is also possible to add a calculated fee to the template, if a guarantee fee is always to be used.   

If a guarantee will increase the utilised amount of a credit facility, it is possible to add a guarantee as related deal to the credit facility.  Note! For the moment it is not possible to have a multi-.currency credit facility that includes guarantees.

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