Letter of Credit Configuration in SAP FI??

Dear Experts,
How to configure Letter of Credit in SAP FI. we dont have TRM as of now.
thanks in advance.
SK

Dear,
no matter process will be same,
1. Create Special GL for vendor with Note Item selected in its proporties in transction FBKP.
2. Use transaction F-57 and post entry with this special GL.
Lettter of Credit is only for information so they will not update any balance in the vendor account.
Regards,
Chintan Joshi

Similar Messages

  • Letter of Credit Facility in SAP

    Dear All
    My client has a requirement of mapping the Letter of Credit facility in SAP. Their reqmt is that based on the project or contract they will get a LC availability, then after using the LC , they need a report to show, how much is the available facility, used LC and the balance per bank. I hope this can be done in treasury Mgmt. Plz let me know the config aswel for this and the difficulty in on config this.
    Regards
    Rajaram

    Hi Rajaram,
    There is no default product type for LC in TRM. ALways you can map the functionality to available product categories in Money Market area under Product Category - 550 or so and can have a integration with Facility product where you can monitor the available/used fund status.
    You need to configure both Product types in Money Market area of TRM.
    Regards
    Prasad AV

  • Letter of Credit Process in SAP

    Hi Guru's
    Can any one send me or explain me  the letter of credit process in SAP or sales cycle?
    please send step by step configuration or documentation on the above process.
    my mail id is [email protected]
    Suitable points will be rewarded.
    thanking you in advance for your kind help.
    Thanks n Regards
    Toshniwal

    Hi,
    Please find the Letter of credit details
    The configuration is as follows - OVFD, Define and assign payment guarantee, OBYN,OBYH, and OBYK. It is properly working.
    I made all the required transaction VX11N, VXA2, F-36, F-34, F-20
    Letter of Credit: A letter issued by a bank to obtain payment for goods. When a letter of credit is confirmed, the advising bank guarantees payment only if all stipulations in the letter of credit are conformed to exactly.
    1.The importer first request a quote for merchandise. This may or may not include transportation and insurance costs.
    2.The importer prepares a purchase order based on the offer received from the exporter.
    3.The exporter creates a proforma invoice and sends it to importer.
    4.The importer opens a letter of credit with the opening bank in the country of import.
    5.The opening bank sends the letter of credit to the advising bank in the exporters country.
    6.The advising bank advises the exporter that a letter of credit has been opened in his favor.
    7.The exporter ships the merchandise in accordance with the terms stipulated in the LOC.
    8.The exporter gives the documents proving that the shipment was made in conformance with the LOC to the advising bank.
    9.The advising bank pays the exporter based on the documents received.
    10.The advising bank transfers the documents to the opening bank and receives payment.
    11.The opening bank gives the document to the importer.
    12.The importer calculates the duty rates, file the declaration with customs and pays the customs duties within the time frame required by law.
    Hope this will be useful
    Reward points if helpful to you.
    Bye
    Anil

  • Letter of Credit - Configuration

    Hi All,
    Please guide me the steps for the configuration of letter of credit for imports & local purchase urgently.
    Thanks
    Veena

    Hi,
    Refer to this weblink for letter of credit for imports
    http://www.sap-img.com/financial/process-of-letter-of-credit-for-imports.htm
    Additionally you can create a GL Account for letter of credit for imports. This will show you the summay of letter of credit for imports & local purchase.
    Please let me know if you need more information.
    Assign points if useful.
    Regards
    Sridhar M

  • Letter of Credit mapping in SAP R/3

    Hi all,
    Scenario is:
    Import PO is raised to a vendor
    Based on the PO Letter of Credit is issued to the vendor for partial quantity.
    Based on the Letter of Credit, the vendor will supply the goods for which the L/C is opened.
    Then the Customs duty is paid and GR is done.
    How to map this scenario in SAP?  How to map the L/C in SAP.  How to create link between L/C, PO, GR & customs duty.
    Please give your inputs.
    Regards,
    Velumani

    Hi,
    After the PO has been created in SAP, from the finance side, they will post LC the functionality is similar to bill of exchange or as a noted item. While posting the transaction, in the reference field PO number will be maintained.
    Once the Goods are received at port.
    Customs duties has to be paid, for this you have to post an invoice through tcode: MIRO for the customs clearing agent with reference to your PO(For customs duties you have to maintain appropriate condition types in PO and against these condition types, custom clearing agents number(vendor number) has to be maintained. All these condition types are to be created with condition category 'delivery costs').
    For imports PO -- GR based-IV should not be checked becoz before receiving the goods you have to clear the custom duties.
    Then once the goods are received you will post the GR and the you will post the invoice for the material vendor.
    Then from the finance side, they will clear, whenever they post the clearing transaction to the vendor, LC realted transaction gets reversed automatically. Bank account will be -ve and your vendor account will be +ve.
    Note: Tracking of LC has to be done manually as the functionality is not complete in SAP.
    Hope this clarifies.
    Thanks,
    Viswanath

  • Letter of  Credit management in SAP Business one

    Hi All,
    One of our customer wants to manage the "Letter of Credit" used in exporting their product to different countries. They need to record it, discount it from bank, record bank charges and close it when their customer repays the amount. Also need to reconcile it through bank reconciliation. Is there any solution available (as an add-on or work around)?
    Thanks and regards
    Ajith G.

    Hi  Peter,
    We are using India localization and the Bill of exchange is not available in that. But after reviewing the functionality, we found that it is a very good workaround solution for our customer.  Now my question is whether this facility will be added for India localization in the next version of SAP Business One?
    In addition to that we are discussing with another prospect who is actually doing cross-border trade. He is satisfied with all other aspects of Business one. Only problem is that he wants to generate all documentations related to his trade to be generated from Business one. Is this possible or any add-on available?
    Regards
    Ajith G
    Edited by: Ajith G on Jun 29, 2009 12:04 PM

  • Letter of credit  management using SAP business one

    Hi Experts,
    One of our customer wants to manage the "Letter of Credit" used in exporting their product to different countries. They need to record it, discount it from bank, record bank charges and close it when their customer repays the amount. Also need to reconcile it through bank reconciliation. Is there any solution available (as an add-on or work around)?
    Thanks and regards
    Ajith G.

    Hi Ajith,
    Please refer to SAP note 1028874
    Regards
    Jambulingam.P

  • Letter of Credit (Urgent )

    Hi All,
    I needed to know if anyone has worked on letter of credit or have dealt with payment gurantee procedure configuration.
    Define and Assign forms of payment guarantee has 5 different configs. First one, Define payment guarantee schema - This part of this configuration controls the sequence in which system assign the sales document ITEMS to payment guarantee procedure. I want to know where actually we can see these sequences happening. I looked at the sales order (at the item level) but system is only picking payment guarantee procedure and form of payment gurantee. I don't see any sequecial order in which I set the config.
    Any input will be great!
    Regards
    Navneet Kaur Bhatia

    Hi Navneet,
    Letter of credit configuration is same as bill of exchange, with small changes.
    Hope the following link is useful to you:
    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FIBP/FI-AP-AP-BE.pdf
    also: Process Of Letter of Credit for Imports : http://www.sap-img.com/financial/process-of-letter-of-credit-for-imports.htm
    Pls assign points as way to say thanks
    Message was edited by:
            Ravi Rana

  • Purchase with Letter of Credit

    Hi Experts..
    Can we manage purchase transaction with letter of credit in SAP Business One?
    Thank you.

    Hi ,
    Check below threads:
    Letter of credit  management using SAP business one
    Re: Letter of  Credit management in SAP Business one
    Hope this willhelp you.
    Thanks,
    Neetu

  • Letter Of Credit Implementations

    Hi gurus,
    If it is possible can you explain me where ı can manage general letter of credit implementations at SAP;including the relationships with the banks regarding to the letter of credits and the links between foreign trade (swifts,correspondings,import etc.)
    Thanks in advance.
    Best regards.

    Link below may be of use to you.
    https://www.sdn.sap.com/irj/sdn/wiki?path=/display/profile/letterofCredit

  • How to configure letter of credit in SAP

    hi all,
       how to configure letter of credits (LOC) in sap.
    regards
    srinivas

    Hi,
    Letter of Credit / Bank Guarantee are noted items in SAP.  There is no effect in the books of accounts for these items.  You have to create seperate Spl G/L Indicator for LOC and assign the same to normal reconciliation account of Vendors / Customers as per your requirement. For creating this go to 'OBXT' and the necessary configuration.  To create LOC in SAP Easy Access goto F-55 and process the transaction.
    Regards
    Sarma BH

  • Process flow of letter of credit and configuration guide

    Hi friends,
    I want to know accounting entries at every stage in letter of credit for purchase transaction, so also requesting for configuration guide. Points will be assigned
    my email id is [email protected]
    Thanks
    Edited by: keetu on Apr 22, 2008 8:35 AM

    Hi,
    Check these links.
    http://forums.sdn.sap.com/thread.jspa?messageID=3537642#3537642
    http://forums.sdn.sap.com/thread.jspa?messageID=5337739#5337739
    Regards
    Ayyallas

  • Letter of Credit in FICO configuration

    HI,
    Plz guide me Letter of Crediti inFICO part configuration steps how to do sned me mail.
    Mail Id:[email protected]
    Advance Thanks,
    abhijeet
    Edited by: Abhijeet Walke on Feb 26, 2008 12:24 PM

    hi
    Hi,
    After the PO has been created in SAP, from the finance side, they will post LC the functionality is similar to bill of exchange or as a noted item. While posting the transaction, in the reference field PO number will be maintained.
    Once the Goods are received at port.
    Customs duties has to be paid, for this you have to post an invoice through tcode: MIRO for the customs clearing agent with reference to your PO(For customs duties you have to maintain appropriate condition types in PO and against these condition types, custom clearing agents number(vendor number) has to be maintained. All these condition types are to be created with condition category 'delivery costs').
    For imports PO -- GR based-IV should not be checked becoz before receiving the goods you have to clear the custom duties.
    Then once the goods are received you will post the GR and the you will post the invoice for the material vendor.
    Then from the finance side, they will clear, whenever they post the clearing transaction to the vendor, LC realted transaction gets reversed automatically. Bank account will be -ve and your vendor account will be +ve.
    Note: Tracking of LC has to be done manually as the functionality is not complete in SAP.
    Process Of Letter of Credit for Imports
    1.  The Clearing agent ask for amount, the person who receive the product will give Letter of Authority to Clearing Agent.  The clearing agent move to bank and take check.  
    For this purpose, we just issue LA.
    2. Prepare Purchase for the Vendor from whom we are going to receive the product.  There may be 2 or more Vendors.
    1. Product cost to be transferred to Vendor A
    2. Freight or Other Charges to Vendor B
    3. Customs Duty and Others to Vendor C
    Tcode : Me21n
    3. First We have to pay Customs Duty to Commissioner of Customs after LA issued.
    Entry : Customs Clearing a/c   Dr
               Cess on Custom a/c    Dr
               CVD Clearing a/c       Dr
               Cess on CVD a/c       Dr
               Special CVD a/c        Dr
               Vendor C a/c             Cr.
    T-code :MIRO 
    4. Cenvat credit for the product will be taken by person who handling Excise in that company
    Entry  : Cenvat Clearing a/c Cr.
                RG23A Part II   a/c Dr.
    5. Clearing of Cenvat Credit
    Entry  : Cenvat Clearing a/c Dr.
                CVD clearing a/c    Cr.
                Cess on CVD a/c     Cr.
                Special CVD a/c     Cr.
    6. After Bank payment they will transfter to us
    Entry : Vendor a/c - Dr.
               Bank   a/c - Cr.
    nagesh

  • Configuration of Letter of Credit

    Hi all,
    I have difficulty configuring letter of credit. can somebody help me with the steps for configuration of letter of credit.
    thanks in advance

    Hi,
    Check the wiki link in SDN - https://wiki.sdn.sap.com/wiki/x/T4DPAQ
    Regards,
    Sridevi

  • Materials Management: Letter Of Credit for Vendor in SAP ECC 6.0

    Hello Experts,
    We are in the process of implementing SAP GTM for our Client.
    One of Our Prime requirement is to map Financial Document "Letter Of Credit" for the Vendor in case Imports. I found that Letter Of Credit can be created only for Customer in Sales/Foreign Trade but the same option is not available for Vendor.
    Does sap support Letter Of Credit in MM-Imports or in Finance for Vendors?
    Thanks & Regards,
    Ganesh

    Hello Debasis,
    Post EPC installation,you need to perform configuration of EPC through portal.You can see it listed under configuration--> configuration scenarios-->EPC.
    During configuration you will be asked to define path of you primavera installation and a user on that system with sufficient permissions. This user is called APS user.
    Try to do a mock configuration run on sandbox/dev system and then you can follow the guide.
    Regards,
    Hetal

Maybe you are looking for