Export Letters of Credit (LC) & Cash Against Documents (CAD)

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Export Letters of Credit (LC) & Cash Against Documents (CAD) within SmartERP.

Manage commercial banking payment instruments, irrevocable export LCs at sight, CAD document presentation, and discrepancy resolution.

{screenshot:export-letter-of-credit-and-cad-management-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_commodity_export, smarterp_agri_traceability
• Security Groups:
  • Export Logistics Officer (Technical ID: smarterp_export.group_export_user)
  • Coffee Quality Lab Grader (Q-Grader) (Technical ID: smarterp_export.group_export_qa)
  • Export Commercial Director (Technical ID: smarterp_export.group_export_manager)
• Master Data Dependencies: Coffee origination zones (Yirgacheffe, Sidama, Guji, Jimma, Harar), ECX contracts, washing stations, export container lots, and NBE 50/50 FX retention accounts.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Coffee Export app icon.
4. From the top navigation bar, open Coffee Export → Origination → Lots / Grading / Contracts / Shipping Documents.

{screenshot:export-letter-of-credit-and-cad-management-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Export Contract Reference (Mandatory): Registered international sales contract number approved by ECTA
   • Origin & Washing Station (Mandatory): Traceable regional washing or hulling station
   • Grade & Screen Size (Mandatory): Specialty Grade 1/2 or Commercial Grade classification with moisture %
   • Contract Quantity (Metric Tons) (Mandatory): Volume in standard 60 kg export jute bags
3. Configure optional operational parameters and localized tags as required:
   • Cupping Score & Sensory Profile (Optional): Certified Q-grader sensory score (acidity, body, floral notes)
   • Port of Loading & Discharge (Optional): Inland dry port (Modjo) to discharge port (Djibouti/Rotterdam)
   • NBE FX Retention Account (Optional): Designated commercial bank foreign exchange account
4. Click the Save icon in the control bar to commit the record.

{screenshot:export-letter-of-credit-and-cad-management-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Origination Batch → Cupping & Grading → Contract Confirmed → Processing / Bagging → Customs Cleared → Shipped).
• Ledger & System Impact: Shipment confirmation recognizes export revenue in foreign currency (USD/EUR), debits export receivables, and computes statutory 50/50 NBE foreign exchange retention entries.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:export-letter-of-credit-and-cad-management-transaction-processing-state}

Trade Payment Instruments in Ethiopian Coffee Export#

Under National Bank of Ethiopia foreign trade directives, coffee exports must settle through approved international banking instruments:

• Irrevocable Letter of Credit (LC) at Sight: Foreign buyer's bank issues a documentary credit confirming payment upon presentation of clean shipping documents.
• Cash Against Documents (CAD): Shipping documents transmitted bank-to-bank; buyer's bank releases original Bill of Lading (B/L) only upon receipt of full cash settlement.

Managing the LC Lifecycle in SmartERP#

1. Navigate to Coffee Export > Trade Finance > Export Letters of Credit.
2. Record incoming LC notification from the Ethiopian commercial bank:
   • LC Number, Advising Bank, Issuing Bank, LC Value ($USD$), Expiry Date, Latest Shipment Date.
3. System checks LC terms against sales contract lines:
   • Required document checklist: Clean On-Board Bill of Lading, Commercial Invoice, Certificate of Origin (Chamber of Commerce), ECTA Origin Certificate, Phytosanitary Certificate, Weight & Quality Certificate.
4. If documents match LC terms with zero discrepancies, the commercial bank negotiates the documents and remits foreign currency.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • Export: Track NBE 50/50 FX retention account expiration (smarterp_export.ir_cron_fx_retention): Runs weekly to monitor statutory 30-day conversion windows
  • Traceability: Monitor container transit milestones (smarterp_export.ir_cron_container_tracking): Runs daily to update Modjo dry port to Djibouti customs handoffs
• Custom Print Templates & Reports:
  • ECTA Coffee Quality & Traceability Inspection Dossier
  • Export Commercial Invoice, Packing List & Certificate of Origin
  • Bole Cargo / Modjo Dry Port Multimodal Shipping Manifest
  • NBE Foreign Exchange Retention & Commercial Bank Allocation Slip
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#