Letter of Credit in FICO configuration

Question

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

Answer 1

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