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Administrator Guide
Last Updated: 2024-05-03
Create Letter of Credit

Create Letter of Credit

  • Create a bank account for the letter of credit. See Define Bank Accounts.
  • For multicompany awards, assign the bank account to the company hierarchy and the bank routing rules of all related companies.
  • Security:
    Set Up: Grants Management
     domain in the Grants Management functional area.
Sponsors might fund cost reimbursable awards from federal grants, contracts, and cooperative agreements in the form of a letter of credit. You can create a letter of credit that details the funding information for the sponsor, and use the same letter of credit on multiple awards. When you draw down a letter of credit, each draw line corresponds to an award by default. To draw down a letter of credit at the award line level, create letter of credit draw IDs to associate with the billing schedules for the award lines that you want to draw from. See Concept: Letter of Credit Drawdown with Draw ID.
  1. Access the
    Create Letter of Credit
     task.
  2. As you complete the task, consider:
    Option Description
    Sponsor
    Select the bill-to sponsor paying for the letter of credit drawdowns for the award.
    Payment Type
    The payment type that you select on the letter of credit determines the available options in the
    Payment Type
     and
    Letter of Credit
     prompts when you create the award.
    Maximum Amount
    (Optional) Enter a funding limit for the letter of credit.
You can now add the letter of credit to your award.