SAP Import Letter of Credit

Hi All,
Can anybody guide me whether letter of credit can be mapped in SAP MM. Do i need to make changes in existing pricing procedure for L/C . Pl. guide

Hi ,
You can Map the whole Import procedure into SAP involving Letter of credit.
The process invloves all the Std steps that into has to be preconfigured into SAP.Such as Bank Gurantee, Bill of lading Commercial invoice, Certificate of origin all the requried proosess as per the law....Refer the below link for more information..
http://help.sap.com/saphelp_gts71/helpdata/en/29/201242b40dca7ee10000000a1550b0/content.htm
And all the duties can designed and taken credit as per the rules such as CVD-countervailing duty, Cess on CVD, Sec cess on CVD, Customs duty, cess on custom duty , sec cess on customs duty and Addtional duty.........For more refer the below wiki Link ..
http://wiki.sdn.sap.com/wiki/display/ERPLO/CIN+Configuration
Hope this may help you....
BR,
Patil

Similar Messages

  • Import Letter of credit

    hi all,
           i would like to know whether import cycle is mapped into SAP or not, if so
           then how much it is present in SAP and how do we process the same ?
           along with that whether mode of payement - letter of credit in import proces is there in SAP?

    Hai,
    You can map the Import cycle in SAP. The standard business practices in SAP are
    1. Create the Import pricing procedure with all necessary import conditions like customs duty, CVD, Landing cost, handling charges, Freight charges etc. Assign it to the schema group & inturn to Pur. organisation.
    2.Create the import vendor master record.Assign the import schema group to this vendor. So that while creating import PO for this venor, the system will determine the import conditions.
    3.Create the Import Po with Zero tax code & also with req Payment terms.
    4.Enter the Customs vendor against the Customs & CVD conditions. Also maintain Freight vendor against freight conditions in the PO itself.
    5.Do the MIRO for Customs vendor. Enter manually all the details in MIRO take the ref as a Bill of entry,
    5.Do the MIGO for PO, Capture the excise & post the doc. As per Indian Govt Excise rule, you can take the credit of CVD as Excise.
    6.Post the Excise doc.
    7.Do the MIRO for material vendor.
    8.Clear the Payment.

  • Import Leter of credit

    Hello peers,
    can any one tell me the configuration steps for LC process in SAP. pls am struck in middle.
    Thanks
    Murali

    Hi,
    Import Process Involving a Letter of Credit
    You (the importer) first request a quote for the merchandise. This may or may not include transportation and insurance costs.
    You prepare a purchase order based on the offer received from the exporter.
    The exporter creates a pro forma invoice and sends it to you.
    You open a letter of credit with the opening bank in the country of import.
    This involves advising the bank of the documents required from the exporter. As an importer, you not only need the documents required by customs, but also the documents that are required by any other agency regulating your commodity. These may include
    Bills of lading
    Commercial invoice
    Export packing list
    Shipper's Export Declaration (SED) (Required in the USA for goods valued at $2501 or more)
    Shipper's Letter of Instructions (SLI) (applies only to the USA)
    Single Administrative Document (SAD) (applies only to the EU)
    Certificate of Origin
    Insurance certificates
    Licenses (when necessary)
    Using the SAP FT application, you can  create the letter of credit yourself before contacting the opening bank. Other than insurance certificates, you can also create the documents listed above using FT.
    The opening bank sends the letter of credit to the advising bank in the exporter's country.
    The advising bank advises the exporter that a letter of credit has been opened in his favor.
    The exporter ships the merchandise in accordance with the terms stipulated in the letter of credit.
    The exporter gives the documents proving that the shipment was made in conformance with the letter of credit to the advising bank.
    The advising bank pays the exporter based on the documents received.
    The advising bank transfers the documents to the opening bank and receives payment.
    The opening bank gives the documents to you (the importer).
    You calculate the duty rates, file the declaration with customs and pay the customs duties within the time frame required by law.
    Hope this helps you.
    Rgds
    Manish

  • 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

  • Re: Letter of Credit - Imports

    Hello,
    I want to map the process of letter of credit in case of imports in SAP.
    What the process is, we are making an import PO. Bank opens LC in equal to the invoice amount. We have to pay margin money i.e 25percent of invoice amount to the bank, in turn, bank opens the LC of 75percent of invoice amount. We are capturing the payment of margin money at 25percent in SAP.
    The point is, bank is giving the facility of 75percent for 90 days. I dont know how to map this scenario in SAP?
    Regards,
    SDN_Creature
    Edited by: sdn_creature on Mar 18, 2009 8:14 AM
    Edited by: sdn_creature on Mar 18, 2009 2:46 PM

    hi we doing like below
    we are created one special g/l indicato for letter of credits after that posted trhu f-40 letter of credits credit and vendor debit here we posted first line item only and after that thru process open items we are selected that vendor  item and posted after that at the time of payment thru f-53 we have cleared here we are enterd vendor number and special g/l indicator, bank outgoing account  after that we have selected that line items and posted i think it will be helpful.
    Regards,
    Nauma.

  • Letter of credit functionality for imports

    Hi Experts
    W.r.t FT, the financial document can be used as LC.
    1) Is it possible to use this LC (Financial doc- Transaction VX11N) for linking the import purchase order?
    2) Is there any standard functionality to monitor the import purchase orders which involve Letter of credit?
    3) Is there any userexit to enhance the existing VX11N to make use for import purchase order?
    warm regards
    marias

    Hello Marias,
    I regret to inform you that the functionality you request is not
    implemented in the standard system within the Foriegn trade area.
    " The documentary payment functionality (Letter of Credit) for vendors
      is not available in SAP Standard System.
      Documentary payments can only be created on the SD side for customer
      but not for vendors.
      At this time, there is no plan to develop this functionality. "
    Please note that the Foriegn Trade functionality has been expanded and
    is available in the solution product "Global Trade Services" (GTS).
    As you are probably already aware information on GTS is available in SAP
    Service Marketplace.
    Regards,
    Alex

  • 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 in import - customization and user steps

    Hi
    we want to use foreign trade module to track letter of credit in import. we want to track LC status with limits and validity dates.
    but in cockpit (ENLO) we are not getting vendor selection. it is only customer selection available.
    please let us know how we can create LC document in ENLO for vendor. if anybody has configuration step and user manual please revert.
    Thanks & Regards

    sap has confirm that this functionality is not available for import hence not possible in sap.

  • 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 - import

    Hi Guys,
    My understanding of the treatment of letter of credit, import, involves the following:
    PO
    LOC
    GR & MIRO
    Customs Duty
    Can someone provide some insights on how to link this up?
    Rgds,
    KO

    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMIVLIV/MMIVLIV.pdf
    you crate the po with inport vendor then you will receive the LOC now before GR you will post the invoice for custom duty then you will post GR and then again the Invoice for Mateiral
    http://help.sap.com/saphelp_erp2005vp/helpdata/en/09/ebf138cdd78a4be10000000a114084/frameset.htm

  • How to config letter of credit for an import

    hi gurus,
    can somebody explain me how letter of credit is configured for an import.  it would be highly appreciated if i get a step by step procedure.
    best regards
    sayeed

    Hi,
    Refer to this weblink
    http://www.sap-img.com/financial/process-of-letter-of-credit-for-imports.htm
    or
    refer to this sdn thread
    letter of credit
    Please let me know if you need more information.
    Regards
    Sridhar M

  • 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 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 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

  • Letter of Credit for Imports

    Hi All,
    How to map letter of credit for import purchase orders in MM module. The foreign Trade part of SD module only talks of export.
    Prashant Tawde

    Hi Phani
    Thank for your help
    Please tell me step by step from creating a letter of credit to paying
    I have a business below:
    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
    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.
    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.
    Please tell me how to configure and post accounting entries
    Step by step
    Thank you very much
    Minh

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