Creating and Managing Bank Guarantees in Empress

Guides & Tutorials
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Introduction

Welcome to this user-friendly guide on managing Bank Guarantees in Empress. A Bank Guarantee is a robust financial instrument that can significantly enhance the financial security of your business.

What is a Bank Guarantee?

A Bank Guarantee is a commitment from a bank that assures the financial liabilities of a debtor will be met. In simpler terms, if a debtor fails to settle a debt, the bank steps in to cover it. This safety net enables businesses to acquire goods, buy equipment, or draw down loans, driving business growth.

Why are Bank Guarantees Important?

In business transactions, you might need to provide a Bank Guarantee to a third party like a supplier. This guarantee, valid for a set duration, ensures that your business partner is financially secure, even if your business faces challenges in settling a debt.

Accessing the Bank Guarantee List

To view your Bank Guarantees in Empress, follow these steps:

  1. Navigate to Home > Accounting > Banking and Payments > Bank Guarantee.

Creating a Bank Guarantee

Here are the simple steps to create a Bank Guarantee in Empress:

  1. From the Bank Guarantee list, click on New.
  2. Choose your guarantee type: whether you’re receiving a Bank Guarantee from a Customer or providing it to a Supplier.
  3. Set a Start Date and specify the duration of the guarantee under ‘Validity in Days.’
  4. Select the relevant Sales Order or Purchase Order based on your choice in Step 2.
  5. The Customer/Supplier and the Amount fields will auto-populate.
  6. Choose a Bank and the associated Bank Account.
  7. Enter a unique Bank Guarantee number and the beneficiary’s name.
  8. Click Save and Submit.

These steps will ensure that you can track Bank Guarantees given to suppliers and received from customers. You can also set up Email Alerts as the expiry date of the Bank Guarantee approaches, helping you stay on top of your financial commitments.

Additional Options

While creating a Bank Guarantee, you have a few more options:

  • Margin Money: This represents a percentage of the money paid to the Bank to activate the Bank Guarantee.
  • Charges Incurred: These are the fees levied by the Bank.
  • Fixed Deposit Number: If you have any Fixed Deposits, you can use these to secure the Bank Guarantee.

Conclusion

A Bank Guarantee is a potent financial tool that can protect your business transactions. By understanding how to create and manage these guarantees in Empress, you can ensure the financial security of your operations. For further help, please consult our other non-technical resources or contact support.