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

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