Financial document (Letter of credit)

Hi,
I want to create a financial document (Letter of credit) in transaction VX11N.
I enter all the required details but I also need the Negotiating bank to be mandatory. If I click on the Negotiating bank (in the BANKS tab) then it is mandatory and I have to fill in the bank details, but - if I do not click on it - then it is not mandatory.
Have you ever find a way to customize it to be required ??
Many thanks in advanced,
Regards,
Livnat

Thank you very much Sam,
I already been in there ,but what do I need to do in this screen in order the Negotiating bank will be required in the LC ?
It has a check in - One time bank,
Max.no.of banks -1
External financial doc. no.- 0
Bank Charges - 1.
Thanks
Livnat

Similar Messages

Financial document - Letter of credit not updated

Hi ,
The financial document ( LC) open value is not updated in vx13n after the PGI and billing even though accounting document is generated in both the cases.
We have assigned the financial document at the item level in the sales order.
Aslo we have tried the cycle where i have assigned the LC in header details .
In both the cases its not getting updated .
Can you please guide how can it can be done .

Got solution.
updated settings in the credit limit check. Automatic credit check with routing updated in the config. now open values are updating in the fin.documents

Financial documents/ Letter of Credit and down-payment

Hi,
I try to map requirements from business against solution in SAP.
There is a scenario as follows, where part of the sales order is covered through down-payment. This should be exempted from Letter of credit value.
Example
Sales Order value 1 Mio USD
Down-payment 0.2 Mio USD > paid immediately after sending out the request invoice (request is generated in SD from Sales order). Until payment, this would remain as the net exposure in the system.
LOC value should be only >> 0.8 Mio USD <<
Is there a solution in SAP to this? What would need to happen to enable this?
Cheers
Hein

Hello Hein
Well, for your requirement you have to go development.
For this you can use No credit check in TCode OVA8 for Define Automatic Credit Control for your desired combination of Credit control area, Risk class & Credit group.
Where you have to write a requirement with help of ABAPer.
OR
You can take assistance of FI guy and looking to define Reconciliation Accts Without Credit Management Update
Where In this IMG activity, you can cancel the credit management update function for certain postings by posting to an additional reconciliation account; the reconciliation account without credit management update.
When you make postings to the standard reconciliation account, the receivables total within credit management is then updated, but those postings made to the reconciliation account without credit management update are not.
In Japan, various receivables that are considered certain to be received are excluded from credit management update, including:
- Active prepaid/deferred items
- Payments by letter of credit
Hope this can assist you.
Thanks & Regards
JP

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

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.

Letter of credit release with VXA3

Hello,
I have this scenario:
- Created a Letter of Credit with 100.000 EUR of amount;
- Assigned the letter of Credit to a Sales Order of 250.000 EUR of amount --> the Sales Order is blocked from credit control because the value of the Financial Document (Letter of Credit) is less than the SO value;
When I release the SO document blocked using VXA3, what behaviour should I expect? I thought that after the SO was released, the difference between the SO Value and the Financial Document value should be seen in FD33 among the open "Sales Value". Instead, I see the whole amount of the Sales Order (250.000 €) assigned to the Financial Document (even if it's value is 100.000 €). So I guess that releasing the Sales Order from VXA3 means that I accept that the whole amount of the Sales Order is covered by the Financial Document, even if it's value is lower.
Is this the standard behaviour, and can it be customized?
Thanks and best regards,
Andrea

Dear Amol Tamhane,
Have not worked on 'letter of credit'.
But if there is any accounting document which gets created due to letter of credit, then you can use the exit for credit management in SALES ORDER LEVEL and write the code to BLOCK THE SALES ORDER ONLY IF
(CREDIT LIMIT + LETTER OF CREDIT AMOUNT ) - (PREVIOUS EXPOSURE + SALES ORDER VALUE ) < 0
You can check BSEG, if accounting document gets created for 'letter of credit' or you can check any tables related to letter of credit based on customer code.
Thanks & Regards,
Hegal K Charles

Letter of Credit Issue in Sale Order

Hi Gurus,
Please help me on this issue.
I have created a financial Document, Letter of credit with Terms of Payment xxxx, ie, due within 90 days.
But when I am creating a sale order and manually changing the Terms of Payment to yyyy, ie due within 30 days, the system is issuing a warning message and allowing to save the sale order.
I dont want to save the document if there is a change in the terms of payment from the LC document.
Is there any configuration setting where i can stop this.
Please help me on this issue.
Thanks,
Sam

Hi SAM,
u can run the tcode vx52 and at "Terms of Payment Tab" you can change the terms of pament to "2" and tick the check box near to "terms of payemnt tab"
or
check the " Define Payment Guarantee Schema Determination" in folowing menu path :---
Sales and Distribution--Foreign Trade/Customs documentry payment- risk management of financial documentdefine and assign guarantee schema.
check the above determination procedure in detail..
rewars points if useful..
regards
yogesh

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

Attaching Letter of credit at Delivery Level

Hi,
Can Letter of Credit (Financial Document) be attached at Delivery Header / Delivery Item level ?
If yes, fine. If no, why ? Please provide all the necessary explanation.
Thanks
Vish
Note: Points would be awarded.

Dear Kokkonda
To my knowledge, no it is not possible to assign the Financial Document (Letter of Credit) in Delivery. You have to assign the same in sale order itself.
The reason if you ask me, assume a customer is placing an order on you for INR 50K. Unless the customer guarantee you for this amount, you wont start production and execute the order. So in order to start production of his entire order, he opens an Irrevocable Letter of Credit through his bank and authorises your bank to negotiate the documents after shipment.
Against this one order, you may be making multiple deliveries and invoices but the total value should not exceed this 50K. So in order to have track of the same, I feel SAP has given the provision of assigning the LC in sale order rather than in delivery.
Any other best suggestions are welcome.
thanks
G. Lakshmipathi

Letter of credit on Sales

Hello Guru's,
We have the following requirement:
In Perú, 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 letter of credit 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
All the documents impression will be sent to the customer. They create Letter of Credits to replace the invoice because legally there are more secure for payment. The payment of the customer must clear the Letter of Credit (The Customer account of the invoice were cleared by the letter of credit)
What solution do you recommend for this requirement? I was thinking to develop a USER EXIT on accounting document invoice creation to create additional FI documents for the LOCs required.
Thanks for your help.
Best Regards,
Pablo

Hello Pablo,
I had the same situation in Chile. I had to make the procedure manually because:
- I could not determine with which Banks I was going to use for the LoC
- I don't know the amount to be paid in each LoC
- I don't know the payment terms for each LoC.
- The LoC currency was not always the same
If you solve these problems, may be a Z report which reads the Payment Method and a BAPI for GL document creation could help you, but its very complex.
Kind Regards

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

Letter of Credit Financial Document not getting updated

Hi,
I have create a Letter of Credit Financial Doc thur TCode Vx11n. I create a sales order & assigned the financial document to sales order. In log there is no error.
When I create a Billing Doc & Excise Invoice. The Financial Document values remain same & does not get updated. Please guide.
Thanks in advance.
Regards
Mahi

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

Credit limit vs financial document

SAP GURUS :
I have taken the credit limit 20,000rs and financial doc value 10,000rs and created a sales order for 11000rs.But 1000rs is not getting updated in Fin Doc or Credit Limit,plz let me know ASAP from where the system is taking this value?

Hi Bharathi Chary,
First of all I would lol to clarify on the process:
Financial document: Is baically a security which customer is giving as a Guarantee against his purchases / services he is taking from the company.
Security can be in the form of LOC or any other variety
Credit Limit: Credit limit will be reviewed from time to time based on the repayment given by customer over a period of time. In the initial stage credit limit will be the same as the Financial security provided by cutsomer and once the customer becomes regular and starts repaying regularly you can enhance the security even without financial security. Its a regular process.
Enhancing the credit limit will be similar to what companies do incase of credit cards.
Hope this povides understanding. revert back fr clarification.
Reward points if it helps
Regards
Srini

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

Letter of Credit - Document splitting

Hi,
Following entry needs to be posted
Vendor a/c Dr.
To Letter of Credit Payable a/c Special gl indicator "W"
While posting entry system showing segment error.
Segment wise document splitting concept is configured. In recon a/c and special gl a/c no segment tab is available to enter segment.
Please advise.
Regards,
Harish

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

Financial document (Letter of credit)

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