Financial documents/ Letter of Credit and down-payment

Hi,
I try to map requirements from business against solution in SAP.
There is a scenario as follows, where part of the sales order is covered through down-payment. This should be exempted from Letter of credit value.
Example
Sales Order value 1 Mio USD
Down-payment 0.2 Mio USD > paid immediately after sending out the request invoice (request is generated in SD from Sales order). Until payment, this would remain as the net exposure in the system.
LOC value should be only >> 0.8 Mio USD <<
Is there a solution in SAP to this? What would need to happen to enable this?
Cheers
Hein

Hello Hein
Well, for your requirement you have to go development.
For this you can use No credit check in TCode OVA8 for Define Automatic Credit Control for your desired combination of Credit control area, Risk class & Credit group.
Where you have to write a requirement with help of ABAPer.
OR
You can take assistance of FI guy and looking to define Reconciliation Accts Without Credit Management Update
Where In this IMG activity, you can cancel the credit management update function for certain postings by posting to an additional reconciliation account; the reconciliation account without credit management update.
When you make postings to the standard reconciliation account, the receivables total within credit management is then updated, but those postings made to the reconciliation account without credit management update are not.
In Japan, various receivables that are considered certain to be received are excluded from credit management update, including:
- Active prepaid/deferred items
- Payments by letter of credit
Hope this can assist you.
Thanks & Regards
JP

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We are implementing ECC 6.0 Version.
The client requirement is to create Letter of Credit for Vendors and to capture data relating issue of Letter of Credit, Terms of Payment and Expirition Date. Against a Single Letter of Credit issued to a vendor client may receive more than one Invoice till the Expiry period of the Letter of Credit and Value. Further, client may also amend the Old Letter of Credit by extending the validity period or the value of the LC.
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Sorry i guess my question is not clear. It is not to link any LC with PO
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Hi
Thanks for the answer I will try to explain my requirement .
In case of import and exports Letter of credit and bank guarantee are opened with the bank. There can be amendments also after its creation in terms , amount or validity period. Then it is negotiated and retired.
An example : A letter of credit is opened on 1st Jan. The goods are shipped on 7th Jan .Credit term given by our bank (in case of import) is 1 month which is counted from the shipment date and it expires on 7th feb. The vendor negotiates the bill on 15th jan.
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List of letter of credits established , negotiated , retired and balance if any.
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hi,
As per my knowledge their is no difference between advance payment and downpayment.
and tax code is used for taxes purpose not for the payment terms.
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Hi,
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Hi,
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[LC|http://www.learnsaptips.com/2011/09/how-to-handle-letter-of-credit-in-sap.html]
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A Third party solution provider named Collabera,formerly IVL india Private Limited Trivandrum,
has an addon module for SAP like OptiSuite - Exports,imports,excise,forms etc , handlying Letter of credit seperately.
Check with the google for more details..
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Financial documents/ Letter of Credit and down-payment

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