LB Letter of Guarantee Management by LucidBrainz is a powerful and complete Letter of Guarantee (LFG) management module built for Odoo 18. This module enables businesses — banks, trading companies, contractors, and importers/exporters — to efficiently manage the entire Letter of Guarantee lifecycle from creation to reconciliation. Fully integrated with Odoo's Accounting module, it automatically generates journal entries for LFG issuance, cover amount movements, bank expense recording, liquidation, and closure. With wizard-based operations for Extend Period, Change Cover, Liquidation, and Close, and branch-based access control, the module is perfectly suited for multi-branch businesses that rely on bank guarantees for their financial operations!

• Complete LFG Lifecycle Management: Manage the full Letter of Guarantee lifecycle — Draft → Approved → Running → Reconciled — in a single, streamlined interface. Auto-generated sequence numbers in LFG/00001 format for easy identification. Status bar with clear workflow stages. Approve button to validate, Run button to activate and generate accounting entries, and wizard-based Close/Liquidation for final reconciliation.
• Automatic Journal Entry Generation: Journal entries are automatically created when the LFG is Run. The opening entry debits the Cover Account and Bank Expense Account, and credits the Bank Journal account for the total amount. All entries are automatically posted and linked back to the LFG record for full traceability via the Journal Entries smart button. Each wizard action (Extend, Change Cover, Liquidation, Close) also creates its own accounting entry automatically.
• Cover Amount & Bank Expense Calculation: Define Cover Percentage and Bank Expense Percentage on each LFG record. Cover Amount and Bank Expense Amount are automatically computed from the LFG Amount. These computed values drive the accounting entries on Run. Separate Bank Expense Account configuration ensures precise categorization of bank fees in your chart of accounts.
• Journal Configuration — Letter Account Setup: A dedicated Show Letter Account toggle on the Journal form (Miscellaneous type) activates the LFG-specific Letter Account field. Only journals with this toggle enabled appear as selectable LFG Journals in the LFG form. This ensures clean separation between regular accounting journals and LFG-specific journals, preventing configuration errors.
• Extend Period Wizard: Extend the LFG validity period without closing and recreating the record. Enter a new end date, add optional additional bank expense percentage, and provide a mandatory reason for audit compliance. An automatic expense journal entry is created if additional bank fees apply. The LFG end date updates automatically and the bank expense percentage accumulates.
• Change Cover Wizard: Increase or decrease the cover percentage at any time when the LFG is in Running state. The difference in cover amount is automatically calculated and a corresponding journal entry is created — debit or credit the cover account vs. bank account based on whether cover is increasing or decreasing. Cover percentage updates on the LFG record after the wizard completes.
• Liquidation Wizard: Liquidate the LFG when the beneficiary calls on the guarantee. Specify a Loss Account to record the bank's liability. Journal entry debits the Loss Account for the full LFG amount, credits the Cover Account and Bank Account for their respective portions. LFG state transitions to Reconciled automatically after liquidation is complete.
• Close Wizard: Normally close the LFG when the guarantee period ends without a claim. A mandatory Reason field ensures accountability. The closing journal entry reverses the cover — credits the Cover Account and debits the Bank Account — releasing the blocked funds back. LFG state moves to Reconciled and no further actions are possible.
• Journal Entries Smart Button: A smart button on the LFG form (visible in Running and Reconciled states) shows the count of all linked journal entries. Clicking it opens a filtered list of all accounting entries created across the LFG lifecycle — Run entry, Extend entry, Change Cover entry, and Close/Liquidation entry — for complete accounting transparency.
• Branch-wise Access Control: Built-in multi-branch support using Odoo's Branch module. Branch Managers have full access to all LFG records across the organization. Branch Users can only view and manage LFG records belonging to their assigned branch. Branch field auto-populates from user context during record creation. Flexible record rules ensure clean data separation between branches with zero configuration overlap.
• State-based Field Locking: All critical fields (Type, LFG Journal, Amount, Partner, Cover %, Bank Expense %, Start Date, End Date, Bank Expense Account, Bank Journal, Branch) become read-only once the LFG moves beyond Draft state. This prevents accidental modification of key parameters after accounting entries have been generated, ensuring data integrity throughout the LFG lifecycle.
• Controlled Deletion: LFG records can only be deleted when they are in Draft state. Any attempt to delete an Approved, Running, or Reconciled LFG raises a validation error with a clear message. This safeguard prevents accidental deletion of LFGs that have active accounting entries linked to them, protecting your financial records.