LOC-BANK FIELD

[Former Member]

Dear All

What is the application of BANK field in LOC(when i try to enter this field it is saying "FIRST CREATE OPENING BANK" how to solve this) and i have given Overdraft as 10% but it is not getting blocked..is there any other setting for this

[Former Member]

Dear Lakshmi Pathi

I created LOC document and i given credit limit as 10000 and OD 10%, my sales order value is 11000... Even though it is getting blocked for credit... should it allowed because we given 10% OD (10000+1000)

If u clarify this that would be help full to me

Thanks

[Former Member]

Dear Lakshmi pathi,

Sorry for that.. hence forth i will continue in one ...

and thanx for giving answer... why the overdraft 10% is not taking.. what is the imp of bank data field

Thanks

[Lakshmipathi]

Dear Ravi

If you have an export sale order against L/C, you can see the following terminologies.

- Opening bank (also known as issuing bank) who undertakes to transfer payment on behalf of importer

- Notifying bank (also known as Advising bank) An advising bank, usually a foreign correspondent bank of the issuing bank will advise the beneficiary. If the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay.

- Confirming bank : The correspondent bank may confirm the letter of credit for the beneficiary. At the request of the issuing bank, the correspondent obligates itself to insure payment under the letter of credit. The confirming bank would not confirm the credit until it evaluated the country and bank where the letter of credit originates. The confirming bank is usually the advising bank.

- Negotiating bank : The bank who negotiates the document on behalf of exporter and route the export documents to Opening bank

- Beneficiary (Exporter) One who exports the material to overseas country

So you have to maintain these datas in the said transaction.

thanks

G. Lakshmipathi

[Lakshmipathi]

Dear Ravi

Please continue your questions in one thread. Dont post multiple threads for one issue. For your initial post, if you got answer, please close the thread.

Coming to your issue, first you should create customer bank in TCode fi01 and this has to be assigned in VX11N / VX12N.

thanks

G. Lakshmipathi