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
Similar Messages
-
Letter of Credit value to be updated
Hi Guys
I have created a Financial Document for my Letter of Credit (LC) value of Rs.100
I have assigned the same to the sales order for the value of Rs.80
I have one more Sales order against this LC for Rs.40
Now my customer have went to the banker and increased this from Rs.100 to Rs.120
If i create a sales order it will go for block, and the same can be relesed
But i have a issue with the above process, if i do the same it will not update my consumption in my LC financial document and in our case it will be still have Rs.20 as open value in the financial documents
To solve this issue, i am trying to have a supplement financial document for LC so that it will update my LC financial document as Rs.120 from Rs.100, and hence through this LC Open value will be Zero
Else, is it possible to update more than one LC financial document to a single sales order, hence in our example i will create a new LC financial document for Rs.20 and i can assign both the old LC financial document number for Rs.20 and for the new LC financial document number for Rs.20
Thanks guys
BalaHi
Yeah you can do that.
In your sales order enter the two line items ex
Line item 1 Material 1 20
Line item 2 Material 1 20
Now you can enter the 2 LC for these line items
regards
Prashanth -
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
MahiHi 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 -
Is there a way to let the customer update their own credit card details for site payment?
Is there a way to let the customer update their own credit card details for site payment?
Only when BC tries to bill the card and can not. Admin will be locked out and when they try to go to the admin the form requesting payment appears and they can add their new details in there.
-
Payment by letter of Credit against Purchase order
When we are purchasing from Foreign Vendors , we need to open a Letter
of credit (LC) .
Depending on the terms of Purchase order , Vendor will discount it /get
payment from Bank on submitting LC and other necessary documents.
Vendor's Bank, at appropriate Time will send the same to Customer's Bank
How to mapped this scenario in SAP-MM and FI .
Activities required to be updated against Purchase order :
(1) Payment Terms : 100 % against LC on delivery
(2) History should reflect LC opened - Date and Bank Name which
Vendor has suggested, our company's Bank Name
(3) LC discounted details
(4) LC payment due date to our company Bank - as Procurement needs
to inform to Finance for this.
Any help will be highly appreciated.
Thanks and Best Regards,When we are purchasing from Foreign Vendors , we need to open a Letter
of credit (LC) .
Depending on the terms of Purchase order , Vendor will discount it /get
payment from Bank on submitting LC and other necessary documents.
Vendor's Bank, at appropriate Time will send the same to Customer's Bank
How to mapped this scenario in SAP-MM and FI .
Activities required to be updated against Purchase order :
(1) Payment Terms : 100 % against LC on delivery
(2) History should reflect LC opened - Date and Bank Name which
Vendor has suggested, our company's Bank Name
(3) LC discounted details
(4) LC payment due date to our company Bank - as Procurement needs
to inform to Finance for this.
Any help will be highly appreciated.
Thanks and Best Regards, -
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
HeinHello 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 -
Dear colleagues:
We are about to implement the u201CRisk Management u2013 Letter of Credit Processingu201D functionality (from the importeru2019s view). As an importer we need to assign some other charges to the LC (e.g. custom expenses), with various due dates. These expenses should update cash management. I suppose this connection between LC and other expenses must occur in the purchase order. If yes, please inform me how we implement it. If no, please inform me with the correct solution. We use version ECC 6.0
Thank you in advance.Hi,
I beleive that, the Letter of Credit Processing is out of SAP Scope as of now.
All LC Charges you have to post manually or Z Object / Customiged Object to be developed for tracking the LC Expences and those values to be used for manual FI JV.
Regards
VG -
Letter of Credit Additional Charges
Dear colleagues:
We are about to implement the u201CRisk Management u2013 Letter of Credit Processingu201D functionality (from the importeru2019s view). As an importer we need to assign some other charges to the LC (e.g. custom expenses), with various due dates. These expenses should update cash management. I suppose this connection between LC and other expenses must occur in the purchase order. If yes, please inform me how we implement it. If no, please inform me with the correct solution. We use version ECC 6.0.
Thank you in advance.Hi,
I beleive that, the Letter of Credit Processing is out of SAP Scope as of now.
All LC Charges you have to post manually or Z Object / Customiged Object to be developed for tracking the LC Expences and those values to be used for manual FI JV.
Regards
VG -
Letter of credit in Sales Order processing
The Problem is related to LC(Letter Of credit) attached to Sales order.
In some cases, when we raise a sales order and attach LC even if all the fields are matching in LC and sales order the value is not reflected in LC.
One more problem is When the order is attached with LC it should not go into credit check but it goes into credit check and blocks the order.
In Case, we are using revolving LC even if the payment is recieved from the customer the value is not getting update in the LC.
The above kind of problems are also persistant in all sorts of documentary payments i.e Bank gurantees and Lc etc
We are using documentary payments for foreign trade for special business trasactions where customer credit management should not be utilized.
Any suggetions on the issue or insight in foreign trade and documentary payments will be highly appreciating.Hi sreedhar,
U just have to do a simple customization as follows,
Go to IMGSales and distributionbasic datacredit and risk mangement-forms of guarentee--assign form of guarentee with order type....
in this case, asssign your letter of credit guarentte (assuming that u have alrdy created the letter of credit as a form of guarentee) with sales oreder type OR..the u wont be having any problem
Thanks,
Krish -
Letter of Credit-Treasury ECC-6.0
Dear Gurus,
I am am new to SAP treasury and our client has given some basic requirements regarding LC.Excerpts of the mail are as follows:
Opening of trade facilities (L/C, T/T, DP &DA) with the banks
All functionailities should have following features;
- Link in SAP from procurement's P/O or any formed requirements of raw materials and spare parts
- Traceable Reference of L/C or trade documents which may divide into multiple shipments
- Automatic and dynamic update (ie. L/C, forward contract due date) in conjunction with report call date
- Status report (ie. hedged, open position)
- Weekly Planning mode to input and adjust import material plan and revision
- Flexibility to manage on standalone and group basis
Can anybody please help with the basic steps and process for configuration regarding the product types and a broadline process.I know that I have to use Money Market Product types.
Regards
RajuHi,
Letter of credit is form of payment guarantee which can be handled in AR/SD Credit Management/Risk Management.
Sales and Distribution
Basic Functions
Credit Management/Risk Management
Receivables Risk Management
Define Forms Of Payment Guarantee
There won't be a letter of credit created in Treasury.
Hedging, open positions (exposure) can be handled under Treasury and Risk Management; tcode THMEX.
Manish -
Letter of Credit in Sales return process/
Hi All,
This issue is related to Letter of Credit, I created a sales order and maintained Financial document in Billing Tab (Letter of Credit) & saved the sales order and the balance of LOC is updated, i created Delivery & Invoice also . Later stage the customer returned the materials and we Created the return sales order but the letter of Credit open value is not increasing or not Crediting.
Please let us know in case of return process weather the LOC or Financial document will credit or not?
RegardsHi
Letter of Credit is used in credit management as one of the tool for Risk management. In case of return process LOC or financial document wont get credited as LOC is for intimation to the customer if the risk level has come to high.Also run the t.code VXDG.
Please check the below link which may help you
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/SDFTLOC/SDFTLOC.pdf
Regards
Srinath -
Letter of Credit treatment in liquidity forecast FF7B
Hi there,
My client has a requirement to display letter of credit for import purchase in the liquidity forecast report. My original thought is to treat the L/C as the the noted item using a special G/L indicator, so it can be captured in FF7B. However, this creates another problem, because the L/C related PO or AP amount will also be captured in the FF7B report. It cause the duplicate amount in FF7B
Any suggestions on display L/C amount only in the FF7B if the L/C is created?
Thanks a lot!
Best Regards,
XuefeiThank you very much Lucciano,
In fact I have already solved the problem and hoping it could also help others I will explain it.
This behavior for down payments it is correct as explained on sapnote 29926 because it prevents the system from considering them twice on Liquidity forecast: once from SD and afterwards from FI.
The correct way when SD updates TR, as per tx OT19, it is to let T074-EBENE field empty for this SpGL Indicators (or not because it doesn't affect).
And when it does not because on tx. OT29 "V_001_I-XFDSD - Update SD" field it isn't selected, the you have the "standard" option of:
1. With tx. OBXR enter entries on T074-EBENE fields, followed by
2. an appropiated FI substitution (tx. OBBH) of "BSEG-FDLEV" with T074-EBENE and
3. another substitution (tx. OBBH) for BSEG-FDTAG with BSEG-ZFBDT.
Nevertheless, thanks a lot!.
Rushid -
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.
SKDear,
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 -
HI
Can any one say me how to hadle Letter fo Credit in SD.
As my client does not have export scenario i have been said that they are going to have it in domestic sale please provide me the settings and the masters if any has to be updated.
And in what way it has to be handled.
Thanks in advance.
Regards,
induHI
Appreciate ur quick response thanks alot..
As u said i have to main in a transaction the informationof LC I have to do some setting anywhere so that it will have a link in the sales order.
Moreover u have been saying that something should be maintained in condition which will get determined could you please be lill alobarate in this.
Sorry for asking all these as i had not worked in LC till date.
Thanks in advance.
INDU -
Revolving Bank Gaurantee/ Letter of Credit
Dear All,
Can anyone explain how can we handle the scenario of Revolving Letter of Credit/ Bank Gaurantee's?
Thanks in advance.Dear Friend,
I have created the LC document which can be assigned to Header/ Item Level of the sales document. System keep tracks the document value with the LC document. This LC document is of Static nature only.
My question was regarding revolving LC.
In revolving LC document, whenever customer pays the amount within the validity of LC document, system updates the available/open amount of LC document so that it can be utilized again.
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