This is related to exports sales. Whenever you receive an export order and the payment terms is against L/C (Letter of Credit), b4 creating sale order, you need to maintain the L/C details in this T.Code.
Once you save the data, a reference number will be given by the system at the bottom screen which should be assigned in sale order at header level billing tab where there is a field Financial doc.no. You cannot generate invoice over and above this L/C value.
The Letter of Credit is issued by buyers' bank favouring sellers' bank wherein, they will stipulate some terms and conditions against which the export order should be executed. After despatch, the exporter will submit the documents with their bank who will in turn, forward to buyers' bank for release of payment.
thanks
G. Lakshmipathi
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