Letter of credit process in Export

Purpose:

Financial document should be generated for attaching the Letter of Credit (LC) with the sales order. This creates a document in Finance but does not do any postings in the ledger. This is purely used for the purpose of tracking and monitoring the letter of credit and does not affect the payments / collections. This is attached to the sales order to ensure that the sales order value does not go above the LC value.

Before doing the Letter of credit, Maintain the Customer payment guarantee procedure in Customer Master Data (XD02) as 0001 and Terms of Payment.

And material should be without MRP View.

Then go for the easy access

Transaction Code: VX11N

Easy access Path: SAP Easy access >> Logistics >> Sales and Distribution >> Foreign Trade/ Customs >> Payment guarantee >> Documentary Payment >> Financial Document >> Create.

Start the transaction using the menu path or t- code

Click on And then you will be getting this screen

Maintain the fields as:

1. Financial document category: U Irrevocable Confirmed

2. Financial document type: 01

3. Company Code: 1000

Press 'Enter' Or Click on to create Financial document

You will be getting this screen

Enter the details: In Partner Data Tab & General Data

Customer: 11157

Ship-to party: 11157

Bank Country: LK (Sri Lanka) (Identifies the country in which the bank is located)

Bank Key: 12311 (Bank of Sri Lanka) (In this field, you specify the bank key under which bank data from the respective country is stored)

Ext. Financial Document number: 12345 (Indicates the number of a financial document which is generally assigned by the bank)

Financial doc. Value: 20,375.00 (this is imp) (Value of the financial document)

Letter.-of-credit currency: USD

Allowed overdraft %: 10% (Allowed overdraft percentage)

Terms of Payment: Z001 (Key for defining payment terms composed of cash discount percentages and payment periods)

Press enter

Click on Dates / Delivery dates Tab:

Date/Delivery Tab

Enter Request date: 26.07.2010 (Identifies the date on which the financial document has been requested)

Date of receipt: 26.07.2010 (Identifies the date on which the financial document has been received)

Latest shipping date: 28.07.2010 (Identifies the latest possible shipping date)

Validity end date: 21.09.2010 (Identifies the validity end date of a financial document)

Opening date: 22.06.2010 (Identifies the date on which the financial document has been opened. Bank)

Last date ocean BOL: 06.09.2010 (Identifies the latest possible date of the ocean bill of lading)

Presentation date: 15.08.2010 (Identifies the date on which the documents must be presented to the bank)

Number of days: 120 Days (If the goods are delivered before the planned deadline, there is a time limit within which the documents have to be presented at the bank. If this time limit is exceeded, the financial document expires although the date specified in the Presentation Date field has not been reached)

Incoterms: EXW – RAJAHMUNDRY & PRESS Enter

Click on Documents Tab

Documents tab:

List of documents configured will be displayed. Enter the number of originals & copies sent and mark the status as 'Completed'.

Click on BANK Tab

Banks & Text tab

No mandatory information is required

The details which you maintained in the GENERAL DATA Tab all the details are automatically come to here. If you want the other bank details like Negation bank or conformation bank or notifying banks, then click on it and the click on Bank Data button and maintain all required fields data.

If you want to maintain any text times then you can writ it in the TEXT Tab

Then click on Status Tab

This Status Place a Vital role during Sale Order creation as well as Letter Of credit creation

1. Maintain the Date and time of creation and if you want you can maintain the description

2. To use the Financial document in Sales order Click on D Switch

Document is available and can be used.

3. Then maintain date and time in the D field

Then Click on to check the document.

You have to get the STATUS as GREEN color

Then Save the Document.

Then Press Enter

And Click on

You will be getting the Financial Document number at the bottom

Then maintain this financial document number in the Sales order >> Header Data >> Billing document Tab >> financial doc Number: 41

And maintain the % of Depreciation:

Then click on the Document.