Can we maintain Letter of credit in sap

Hi Friends,
Can we maintain LC in sap ? If so Please tell how to maintain.
Regards

HI,
Link below may be of use to you.
https://www.sdn.sap.com/irj/sdn/wiki?path=/display/profile/letterofCredit
http://help.sap.com/erp2005_ehp_01/helpdata/en/95/3ca410110511d4b5ae006094b9ec21/frameset.htm
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.
Thanks & Regards,
Kiran

Similar Messages

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

Can we maintain division specific credit limits?

Hi All,
we have one company code & one Cr.Control area.
but we have 2 sales areas.
eg: 1000/10/AA &
1000/10/BB.
My client wants to maintain division specific credit limits like
div:AA- $4000
& BB- $6000.
Total Credit control area limit -$10000.
in FD32- we can maintain customer/cr.control area specific limits only.
Can we maintain division specific?if yes,where can we enter 2 different limits to same customer.
plzz reply asap.
*reward points sure

Sol'n: for all those who would like to know, what we have adopted is,
We create Sales area wise Credit control areas & assigned to respective sales area in IMG as well as in CMR.
we have assigned multiple credit control areas to a single comp code
( IMG - FI - AR/AP- Credit Management - Credit Control account - Assign Permitted Cr.control areas for Comp code)
then,
In FD32-
Maintained Customer credit sheet as desired such as
Cr.Control -1 = $4000
Cr.Control - 2 = $6000
But the thing is we have to manually monitor these limits at the time of FD32 creation ( what is max credit limit we are offering, how much is allocated for particular Cr.Control area which means division)
Hope it helps in understanding.
any more plz revert

LC ( Letter of Credit )in SAP ?

How we can Track and Control LC in SAP ?
we have a requirement of LC , Tracking and Controlling for Vendor..
LC issues to Vendor..
How to maintain and Control LC for Vendor...

Dear,
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 or YMIROOTH
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.
Check the process: http://help.sap.com/saphelp_gts80/helpdata/en/29/201242b40dca7ee10000000a1550b0/frameset.htm
Regards,
Syed Hussain.

How can i maintain seasional wise credit limit for the customer

please
help me the scenario
regards
ram

hello, friend.
you can do this in OVA8.
let's say the usual business cycle is that sales always grows to 20% above normal during the month of december. your company decides to increase the customer's credit by 5% during this period.
for this, go to OVA8. in the 'Credit limit seasonal factor' enter '5%' and specify from 01 december 2008 to 31 december 2008. then assign the risk category to the credit account via FD32.
the date range is specific and is not automatically renewable. you must also remove the entries here if the requirement is no longer active.
regards.

Where can i maintain licence of extn ans sap licence in a PO

Hi experts ,
For a STO i need to maintain licence.where in PO can i miantain licence??
Please help me..
Thanks in advance
ria

What kind of license you need to maintian. this is import product?

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

Advance payment can not be used against credit limit and another sales ord

Hi,
I have advance payment scenario where customer want advance payment cannot be used against another sales order and against any credit limit.
Let me put one example.
Customer X is having credit limit of 1000 USD, if my client is received customized product order then he will take advance for this special order but customer X is already enjoying credit limit of 1000 USD. In this scenario my client wants advance payment received cannot use against any sales order and against any credit limit.
If I will post advance payment in F-29 then customer credit exposure will decrease against credit limit in FD32 which will affect normal sales order credit limit. Here customer does not want to utilize advance payment against credit limit of customer which is use for normal sales order.
Please suggest

Hi,
You can use the SAP standard documentary payment management functionality together with credit management for this purpose. You need to configure Documentary payments in SAP first. For that see below link;
[Documentary payments|http://www.learnsaptips.com/2011/09/how-to-handle-letter-of-credit-in-sap.html]
Then the advance payment has to be created as a financial document in SAP. This is just a SD only document and no impact to FI. During sales order creation you can assign this document number in to your sales document. It is possible to add it to sales order header as well as to individual line items.
If the attached financial document is sufficient to cover the value of the total sales order (If you attached to header) or value of the line item (If you attach it to a line item), system will NOT take that value for credit exposure calculation.
As far as I understood from your question, this is exactly what you're looking for.
Best regards,
Anupa

Letter of Credit in sales cycle

Hello experts,
I have the following scenario:
Apart from the Invoice Document I need to give to the customer some Letter of Credits (LOC) that represent the 100% of the invoice value. The customer will pay the letter of credit, not the invoice. So I need to create a process that reverse the invoice and create n letter of credit assigned to the original invoice for the customer. Depending on the payment terms I can have 3 letter of credit for an invoice.
What about the Documentary payment (SD-FT-LOC) in SAP? Can I use VX11 to create LOCs and then assing n LOCs to 1 invoice? I was thinking to develop a USER EXIT on invoice cancelation to create, apart the standard FI document invoice cancelation, the additional FI documents for the LOCs required.
Thank for your help.
Best Regards,
Pablo

Hello G. Lakshmipathi,
The scenario is the following:
Apart from the Invoice Document I need to give to the customer some Letter of Credits (LOC) that represent the 100% of the invoice value. The customer or bank will make the payment to us clearing the letter of credit, not the invoice. So I need to create a process that reverse the invoice and create n° LOCs assigned to the original invoice for the customer. Depending on the payment terms I can have 3 letters of credit for 1 invoice.
Example:
1.     Sales Order 1: Net value 900 USD (Payment terms 90 days)
This sales order must have assigned 3 letters of credit that sum the total sales order amount (900 USD):
a.     Letter of Credit 1: Net Value: 300 USD, payment terms 30 days
b.     Letter of Credit 2: Net Value: 300 USD, payment terms 60 days
c.     Letter of Credit 3: Net Value: 300 USD, payment terms 90 days
2.     Invoice 1 Net value 900 USD (Payment terms 90 days)
Accounting Document Invoice 1:
                                                                                D                    H
Customer Account       12XXXXX1                         990
VAT              4XXXXXXX                   90
Sales              7XXXXXXX                  900
Actually the following documents are created automatically after invoice creation according to the Letter of credit parameters set in sales order. (This process is done in their actual legacy, not in SAP, we need to replicate the process in SAP)
Accounting document Letter of credit 1:
Letter of Credit account        12XXXXX2     330
Customer Account                12XXXXX1              330
Accounting document Letter of credit 2:
Letter of Credit account        12XXXXX2     330
Customer Account                12XXXXX1              330
Accounting document Letter of credit 3:
Letter of Credit account        12XXXXX2     330
Customer Account                12XXXXX1              330
To sum up: For this example the system must create 4 documents during invoice process.
A.      Invoice 1 for 990 USD
B.     Letter of Credit 1 for 330 USD
C.     Letter of Credit 2 for 330 USD
D.     Letter of Credit 3 for 330 USD
What solution do you recommend for this requirement?
Thanks for your help!
Best Regards,
Pablo

Finance documents - Letter of credit - sales order value than FD value?

Hi,
we are looking at this function of finance documents (ENLO, VN11n).
Scenario:
Sales Order value : 1 Mio USD
Finance Document value: 0.6 Mio USD
I want to create the FD document now fixed for the amount without specifiying an overdraft percentage (i.e. 100%).
Is it possible to cover this scenario?
Business reason:
We often have down-payments request issued at the beginning of the process and the amount might cover the gap. Or it is possible that credit limit of the customer covers the gap.
Thanks
Hein

Hi,
Yes, you can use the documentary payments functionality to cover a certain percentage of the sales document value. Balance will be considered for credit limit calculations. Check below link on how you need to configure this.
[LC|http://www.learnsaptips.com/2011/09/how-to-handle-letter-of-credit-in-sap.html]
Best regards,
Anupa

Letter of credit maintenance for order and delivery documents

Hi Friends,
As there are three places where we can maintain Letter of Credit ( Financial documents) data.as
1. Order Header data
2. Order Item data
3. Delivery Header data
What is the importance of all these and ideally where shd maintain ?
kindly guide
Shailesh

Hi,
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 or YMIROOTH
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.
Give ur mail id.. i will send the doc. its not easy to make u understand that concept.
Regards
Srikanthraj

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

Financial accounting Letter of credit

Dear All,
Please help me out.
How to post the statistical posting like letter of credit in sap and what sp gl config we have to do?
Thanks & Regards,
Bhadresh V. Shah
9967649163

Hello
Guarantees made are shown in the notes to the balance sheet. Guarantees received, however, are not displayed on the balance sheet. Nevertheless, it is a good idea for internal purposes to have an overview of the guarantees that you have received. In the SAP system, therefore, you can manage guarantees made and received separately from other business transactions - as special G/L transactions.
Processing Guarantees in the SAP System
In the Financial Accounting application component, you use a special function to post guarantees. When you enter a guarantee, you merely enter the account assignments for posting to the customer or vendor account. The offsetting entry is always made to the same offsetting account, a clearing account. This is carried out by the system.
       1.      You post a guarantee made to your customers account.
       2.      The system makes the offsetting entry automatically to a clearing account.
Transactions where the system always makes offsetting entries automatically to the same account are called statistical postings, since they are generally not displayed on the balance sheet or only in the appendix. For example, guarantees received are not displayed while guarantees made are displayed in the appendix of the balance sheet because of the liability to recourse.
You require the following to post guarantees:
·        Separate special G/L accounts for guarantees made and guarantees received.
For more information, see Special G/L Accounts
·        Clearing accounts for the offsetting entry
For more information, see Clearing Accounts
·        Posting keys for the offsetting entry
These posting keys are already defined in the system.
Clearing Accounts
To make an offsetting entry for a guarantee posting, you create the clearing account and define the account number in the system for the automatic posting. You must specify the clearing accounts separately for each chart of accounts. You can differentiate the accounts per debit and credit postings. Since the automatic offsetting entry procedure can be used for any special G/L transactions, you can also differentiate the accounts per account type via the special G/L indicator.
You post guarantees made and received in your system. Additional transactions can also be configured for which an automatic offsetting entry posting is necessary. This enables you to post interest receivables to the same account for example. You would then differentiate your clearing accounts according to the account type and special G/L indicator.

Bank gurarantee and letter of credit

Hi experts,
how we can update the the bank gurarantee and letter of credit in SAP systems,
Is i need any additional configuration ?
regards,
Sanju MS

Dear Sanju MS,
please kindly run the transaction OBXY. You should already have the following entries:
D G Guaran. Guarantee
D L Letter Letter of Credit
Then You can use F-38, F-49 to post.
I hope this helps.
Mauri

Can we maintain Letter of credit in sap

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