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

Similar Messages

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/payment guarantee

my customer is giving letter of credit, can somebody enlighten me to how to configure letter of credit.
please tell me configuration of letter of credit, and how to compensate the sales order with documentary payments
if possible can somebody send me any realtime examples of configuring the same
my id is [email protected]
thanks

hi rajan,
please check this :
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.
thanks
sadhu kishore

Letter of Credit for Sales

Dear All,
Can anybody guide me the configuration of Letter of Credit.
Rgds,
Panda
Edited by: Siba Sankar Panda on Feb 15, 2008 3:06 PM

Hi
You need to configure the Recievables Risk Management in Basic Functions> credit Management.
Once you are done with the settings , you need to create the Letter of Credit through transaction VX11N.
after creation you get the documentary number , which you can actually use in the Sales Orders> Item level>Billing > Risk Management> Financial Document number.
This financial Document will contain , the details such as House bank , LC limit , Duration , Value etc.
Regards
KRSNA

How to take print out for "Letter of Credit"

Hi,
We have configuration for Letter of Credit and posted some documents for it.Now i need to take print out of Letter of Credit transactions.
Kindly help me in this regard...
Thanks
Suvarna

Hi,
SAP does not provide the entire life cycle of L/C. we only maintain the L/c Details in SAP.
Thre is no standard that can give you the print. You may need to customise if needed.
Caio
Raghu

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

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

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

Configuration of Bills of Exchange and Letter of Credit

< MODERATOR: Message locked. Please read the [Rules of Engagement|https://www.sdn.sap.com/irj/sdn/wiki?path=/display/home/rulesofEngagement] before posting next time. If you have a specific question, please ask. Otherwise search first. >
Please can someone give me the steps for configuration of Bills Receivable, Payable and Letter of Credit.

1) No restart is necessary when dataguard broker is used to upgrade the protection mode from maxperformance to maxavailability, you have to do this if you would change the mode manually outside the broker.
2) ... Won't this be a problem since unless a switchover/ failover has been performed the standby database is not supposed to be mounted? ...
I don't understand this. A standby database is always (at least,it may be even open,depending on the configuration and version,which you don't tell) to be mounted.
You don't need to add 'standby database' to 'alter database mount', because Oracle knows is it a primary or a standby database. This clause is optional,more interesting for a human reader.
Werner

How to track Letter of credit in FI Module.

Dear Gurus,
(Exports scenarios)
I have configured letter of credit for customer's export scenario. At end user level we are creating letter for credit using VX11N. Once the letter of credit is created, we link it to the sales order at header level in billing document tab - financial document field.
I would like to know how can we track this letter of credit in FI module? For example if we receive payment from the bank against letter of credit which is linked to sales order then how will we be able to track that letter of credit while entering the customer payment in FI module.
Also help me understand whether I am posting it to right forum, as I am posting the question for the first time here.
Please advice. Thank you.
Edited by: jayfanse on Jun 9, 2011 5:25 PM
Edited by: jayfanse on Jun 9, 2011 5:26 PM

Dear Jay,
We are also using letter of credit sale in our company but the LC payment is normal from accounting side when ever Accounts receive LC payment from the customer they will post it against customer account (Customer Code) and write the Text this payment against so and so LC and Commercial Invoice Number if you run FBL5N Report you can see this text.
There are some reports to check the LC sales scenario: VXA1, VXA2 & VXA3
Regards,
MH

Letter of credit check status not correct in VL01N

Hi, Gurus,
I activate both credit management and documentary payment. When I try to create delivery-VL01N with reference to a sales order, i assign an financial document with 100% depreciation. Suppse deliver amount exceeds this financial document, system should issue message and block this delivery. However, there were no such message and credit status is "A" when saving delivery.
In Vl02N, not changing any data, system issue the message showing that
the financial document value is exceeded, and delivery is blocked when I save the delivery.
I checked my configuration, and cannot think of anything related to this.
After debug, I found out that the reason is that SAP get delivery value from table S131, field OLIKW and compare it with financial document open value. However, S131-LOIKW is 0 when I create the delivery. After delivery is created, S131-OLIKW value is corect. Therefore, when i change delivery and try to save before exit, system will issue the message.
Does anyone know anything might be related to this weird issue?
Thanks,
Cicely

Hi Gopala,
The accounting document has already been released &accounting doc has been created. But the value of Financial Doc i.e Letter of Credit remains same.
Regards,
Mahendra

Letter Of Credit During Export sales

Hellos Experts,
                         This is neo, I work for the client were they have export sales so they have the Letter Of Credit during the process. Now the scenario is that.
I know some thing like I did the configuration setting for this In IMG (Foreign trade and customs >> Documentary payments) every thing is 5n. and the process which i fallow is
va01
vx11n
vl01n-PGI also
VF01
VF02-release to accounting.
when i am doing the sales order in the line item i am entering the LC num:":82" and saved the document. After this when i see the VX12N the 82 number then the lc value is decreased. after the completing of delivery and invoice and release also when im going to check the value of LC 82 is reamins same.
here my qutions are:
1) how to do the export sales process with LC
2)the process which i fallow is correct or wrong
3) what is the use of
     a) VKM3
     b) VKm5
     c) VXA3
4) if during this process do i need to release the document using any special transaction codes
5) The Main can I use Single LC to Multiple sales Orders.
thanks and regards,
Neo
Edited by: neo.anu on Jul 24, 2010 7:32 AM

Dear indrajit
run VX11N and maintain the L/C details there and once saved, a reference number will be generated. Go to sale order, select at Header tab Billing and assign this reference in the field Financial doc no
thanks
G. Lakshmipathi

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

Letter of Credit issue

Hi Friends,
I'm trying to iimplement Letter of credit for our customer.
I'm creating a sales order and giving the reference of the Letter of credit(U -irrevocable unconfirmed) at the line item level. LoC value is 10 lakhs INR and SO value is 60,000 INR. The order in this case is still going on credit block.
Is there anything missing here? I have made all the relevant settings for payment guarantee.
Can LoC be configured to work indepently of credit management.
Regards,
Saji

Hi,
In the customer master> Sales area Data> Billing tab, you have to mention payment guarantee procedure 0001 = Letters of credit.
In the sale order when the financial document is assigned ( created in VX11n ) the green light should be displayed when checked.
If you do not want credit management to be active for the customer for whom payment guarantee procedure is maintained, then remove credit control area from the customer master.
The reason being when LC is assigned, it is as good as payment received. so there will be no credit exposure for the customer.
Hope this helps.
Regards,
Sharan

Configuration of Letter of Credit

Similar Messages

Maybe you are looking for