Letter of credit control

I try to implement the use of the letter of credit in SAP, all is working good except when I want to do a new control between the sales order and the financial document.
When I want to do a new control in the sales order (VA02), in the header Billing document view, I need to delete the field "Financial doc. No", do "enter" and fill again the field if I want to see the control result with the button "List Financial document"
Do someone know if there is a solution to not do those action before to have the control result ?

Standrd throug Risk manageemnt

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Control Delivery split based on diff in exchange rate (let. of credit)

Hi Team,
We have a scenarios where the user does nto want split in delivery because of differecne in Exchange rate for line items.
In my case when Letter of credit si assigned to line item.
I understand this as standard behavior that a delivery splits happens based on difference in exchangerate.
My question is to control this split, will it be a right to control it by routine in copy controls routine form order to delivery or we consider the user exit.
So, kindly assit me to solve this or do we have any standard setting by which i can control. this.
Thanks in advance
Balaji

Hi Balaji,
See Note 415716 - User exits in delivery processing, because it tells us how some modification can affect to split documents.
I suggests you to manage it with VOFM subroutine. The idea is that diferent values in LIKP-ZUKRL determintes the split of documents. You can populate until 40 characters, and you manage it with structure ZUK. This concatenation in a string is moved to LIKP-ZUKRL. It works like ZUKRI in spliting of invoice. This VOFM is set in copy rules.
Regards
Eduardo

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

Credit Check againt letter of credit.

hi,
This is regarding credit check of sales order against FD. If the letter of credit belongs to company 001 and sales order contains any line items materials other than company 001. It gives an error EI574 "Financial Doc data check result not ok". Is there any way to do credit check ignoring company? I mean financial document will be in one company but sales order items can be from multiple company. Please share your expertise.
Regards
Achuthanandan

Hi Achuthanandan,
if the credit control area is assigned at company code level then this error will appear
if the credit control area is assigned at the sales area level then this error will not come
Regards,
Santosh

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 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

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

Urgent: Need help in automatic credit control

Hi SD Seniors
Please help me in the URGENT Credit check Control Configuration.
According to the user requirement, need to have simple static credit control in the place of sales order & delivery.
When credit check fails during the order creation,
1.     Wants to popup the warning message without blocking the delivery
2.     And wants to block the delivery from the PGI process.
I have already done the necessary credit check configuration in my test system. Based on the simple credit limit check,
System issues the warning message correctly at the time of order creation.
And I have configured the automatic credit check control configuration for the blocking the delivery PGI steps. But system doesnt block
The delivery and it still allow proceeding for PGI without any error message.
Please refer by below automatic credit control check for blocking the delivery. Please let me know, is there any other step I missed out here.
1. Credit control area is assigned to the company code.
2. Credit control area is assigned to the sales area.
3. Credit control area is assigned to the payer.
5. OBZK:   Assigned
7. Risk category for each credit control area.
8. OVA8: -Credit control area + Risk category + Credit group
9. FD32: -Credit limit, Risk category, Currency: assigned
10. OVA7/VOV7: - Activated correctly
11. V/08: - Pricing Procedure subtotal set to A
12. OB45: - Update Group 00012
Your help is very much appreciated.
Thanks in advance
Regards
Priyan

Karan, Thanks For you Quick Response.
OVO8: Cr.Ctrl.Area + Rick.Catg + Credit.Group (03)
The same credit group was assigned to the OVAD also.
OVAD: Dely.credit.grp = 03   (Credit group for goods issue)
AND
GI.Credit.group = 03 (Credit group for goods issue)
Is it correct?
My doubt is where exactly, we are telling the system to block the delivery.
In OV08, could you please tell me what are all the settings need to be done for
block delivery PGI
Regards
Priyan

Letter of Credit Updation

Hi,
I have an issue with Letter of Credit. I have created an LC using financial document and processed the order and PGI is done. Now the LC value is not getting updated. Even if the order value is greater than the LC value it is getting processed without any warning message.
Can anyone help me out in resolving this issue. I m working in ECC 6.
Thanks and regards,
Surya

Hi,
Whether the Credit Management settings are configured or not, the Risk Management settings shall be working.
Pl check:
1. In Financial document controls (in SPRO) , you have maintained the TICK MARKS against say, value / incoterms / other parameters that need to be checked
2. The assignment of Procedure to a combination of Sales order type / customer
3. Ensure that the procedure is assigned in the Payer master record
4. Check when you create a Sales order, the procedure is defaulted automatically. You can maintain this manually also.
5. You can maintain the procedure at the Header / item level
6. Once the procedure & the Financial document number is assigned, press "financial doc" button to check the results.
Hope this helps. Pl let me know if you still face issues.
thanks & regds
sriram

Letter of credit in purchasing

Dear All
i want to Use Letter of credit for purchase through R/3 please guide me which course should i study or which is document name or book about LOC?
best regards
R.T

the import data view in purchase order is displayed or hided based on customizing
OLME > Foreign trade > control of FT in MM and SD documents > Import views in purchasing documents
And it will not help you, as standard SAP does not support letter of credits in procurement. the functionality is only there for SD.
the basis meaning of LOC is to secure that a vendor gets the money for the material delivered. so he needs this control to avoid that he does overdeliveries for which he will never see the money.
there is nothing for the buying party to see how much of a LOC is already fulflilled. you either do this manually outside SAP, or you have to built your own logic, tables and programs to do it in SAP.
As a workaround you could create contract which has the amount or the LOC, and do call offs against this contract. So you could use SAP standard transactions to monitor how much you have released and how is left on the contract (respective on the LOC)

Sales Order Credit Account and Credit control area not updated

Hi,
I have a production issue. I have two sales orders created from Same Value contract, with same PO, same sold to party same payer. Both the orders created by same user at the same time.
First SO has credit control area and credit account is updated but the second order did not update with this information.
For first order, if I go to Environment -> Partner -> Display credit account, system taking to FD33 screen of the credit account.
For the second order, above menu path giving message "Cannot display credit limit as no credit management account is available"
Please let me know how fix the second order to rectify this issue.
Thanks,
Satish

Hi,
Goto OVAK T.Code.
Assign credit check to your second sales order type.
Assign the values from "A" to "D".Any value as per your need.
Save.
Regards,
Krishna.

Letter Of Credit - Determination strategy

Hi Gurus
i am trying to Maintain Determination strategy from GTS area Menu-->Risk Management-->Letter of Credit Processing-->Maintain Determination strategy
I have create Legal regulation as Z1LOC and all other Configurations maintained
now i am getting error
No numbering scheme could be determined for legal regulation Z1LOC"
i dont see any Number range schema for LOC
Could you please let me know which setting i am missing
thanks
sarvan

Hi Sarvan,
For some reason, the system is trying to find a Numbering Scheme for Legal Control. The best workaround will be to make an entry in the control table without necessarily making any assignments,
In IMGpath (GTS 10.0):
Global Trade Services >
General Settings >
Numbering Schemes >
Assign Numbering Schemes to Legal Regulations of the Application Areas
Choose level: Assign Scheme for Numbers in Legal Control, and add an entry for your Legal Regulation Z1LOC. Hopefully that should sort it out.
Regards,
Dave

Credit control on LC

Dear Experts,
There is one new requireemnt from my clinet. My client using SAP4.7 and would like to control customer credit limit based on Letter of credit. Business would receive LC for evry sales order or combination of sales orders. They need to calculate credit control area update 000012 for LC also.
Is it possible to control on basis of Letter of credit.
Best Rgds
Suma

Standrd throug Risk manageemnt

Credit Control Area Management

Dear All
As part of Enhancement, we are configuring the "Customer Credit management" with Credit Control area organizational object.
Client has identified to use "Decentralized" Credit control management, but however, all comapny codes are assigned with one controlling area since implementation (since 2.5 years).
Though Credit Control area was assigned during implementation, it was actually not used. Now they wanted to use the same. However, they wanted different Credit controlling area for different company codes.
However, If I am assigning new Credit controlling area now to respective company codes, then system is considering the AR transaction data posted from the date it is assigned. but, we want new credit control areas to consider all the data from past 2.5 years. Is this possible?
If possible, please help, how to fix this.
Your help highly appreciated
best regards
S Habib Pasha.

Hi Habib
There is a standard SAP program that lets you revamp all the entered data to their correct credit control area and the steps involved are:
u2022     Table dumps of KNKK, S066, S067 on the old Credit Control Area
u2022     Check and export the values from Report VKM4 to ascertain the number of blocked orders
u2022     In SM30, Update the Tables T014n and T001cm
u2022     Go to Transaction OB38 and assign your new CCA as default for the company codes
u2022     Run the transaction F.28/RFDKLI20 execute without any parameters {check the test run output}
u2022     Execute Program RVKRED09 {might not be required u2013 since RFDKLI20 does redo the credit check}
u2022     Validate VKM4 for all blocked orders
u2022     If there were any discrepancy between AR receivables and the Credit Master, it can be viewed by executing the Program RFCORR40
Also make sure that if you are using the different CCA for the same Co Code, in OB38 - you have checked the 'Overwrite CCA'' check box.
Hope this helps you; let me warn you - its a very tedious process and it might take a whole weekend to run this in a Production Client
Good luck
Rukshana

Credit Control Area - SAP ISU FICA or SAP Finance (ERP) ???

Hello Experts,
I was reading about credit control area which is basically - organizational unit that represents an area responsible for granting and monitoring credit. One control area can corresponds to many company code (though vice versa is not true).
So my question is, in term of work order planning should I consider Credit Control Area as a part of SAP Finance (ERP) or SAP - ISU?
Please let me know best reason to put it into any side. I want this information for planning purpose. Kind of vague question, my apologies for that.
Thanks.

Yes, you will be dealing with new transactions and with a different customizing, for example:
Functional:
Financial Supply Chain Management ->Credit Management->Rule for Scoring and Credit Limit Calculation and Check Rule
Customizing:
Financial Supply Chain Management->Credit Management->Credit Risk Monitoring
FSCM Credit management is far more complete functionality than AR Credit management.
Best regards,
Cristobal.

Letter of credit control

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