Handling Letters of Credit in E1 9.2


Has anyone had this type of situation or have any advice on if voucher logging or prepayments can handle this;
We have a request to be able to account for LC handling in accts payable. The scenario is;
Product is requested from the shipper
the bank creates a letter of credit on the company account and notifies the shipper (usually overseas)
The product is shipped and the invoice sent and arrives in port
The LC amount is released to the shipper
The product (PO) is received and the invoice is matched
The question remains how to clear the matched invoice(AP record) as the payment has been made bu lc

setting up and using prepayment processing for this type of transaction
handle it properly. i.e. creating the prepayment item when the LC is
created and clearing the entered ap voucher against it

Has anyone ever done this, or handled this kind of transaction another way

Thanks in advance