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Administrator Guide
Last Updated: 2024-05-03
Concept: Letter of Credit Drawdown with Draw ID

Concept: Letter of Credit Drawdown with Draw ID

When you record a letter of credit drawdown in Workday, each draw line corresponds to an award by default. To record a drawdown at a more granular level than the award, you can create a letter of credit draw ID for the billing schedule. When award billing schedules contain draw IDs, you can record drawdowns for award lines associated with each draw ID instead of the entire award.
To enable letter of credit drawdowns with draw IDs, you:
  1. Create the letter of credit draw ID.
  2. Assign the letter of credit draw ID to 1 or more billing schedules.
  3. Spend on the award and generate the revenue recognition and invoice.
  4. Record letter of credit draw down.

Letter of Credit Draw ID

You can create letter of credit draw IDs with the
Create Letter of Credit Draw ID
 task. You can also create the draw ID from the billing schedule when you change the billing schedule and select
Edit Schedule Header
.
You can associate the same letter of credit draw ID with 1 or more billing schedules and across multiple awards.

Billing Schedule

You can create and assign a letter of credit draw ID to a billing schedule when you create the billing schedule and edit the schedule header.
To add a letter of credit draw ID to an existing award billing schedule:
  1. From the related actions of award billing schedule, select
    Billing Schedule
    Change
    .
  2. Edit the schedule header and go to the
    Letter of Credit Details
     section. You only see this section when there's a letter of credit assigned on the award header, as you can only assign a draw ID when the award is associated with a letter of credit.
  3. In the
    Letter of Credit Draw ID
     field, create a new letter of credit draw ID, or select one that you already created.
When you want to draw on a letter of credit for an award line, associate the award line with a billing schedule, then add the letter of credit draw ID to the billing schedule header.