Letter of credit

[Former Member]

Dear all

I have created LC (Tcode VX11N) with value 2000 EUR and assigned it to the sales order header in Billing tab. The sales order value is 100 EUR, but during creating Delivery I m getting the error "Order blocked for delivery as a result of credit check".

Why the system is blocking delivery due to credit check. Can we make the system to work in such a way that it should not block Delivery due to credit check

Note: Credit management is not active, not even standard Credit control area 0001 is assigned to the company code.

Regards

Vipin

[Lakshmipathi]

First check in that customer master Sales Area Data in Billing tab whether you have maintained any Credit Control Area. If so, you can remove and try this process.

On the other hand, if the credit management is activated for the company code, then you need to apply a billing exit where you have to define a logic such that if the terms are against L/C, system should not consider the credit limit.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi,

There is no credit control area define so no issue of removing it from the customer master as it is not assigned to it, i have checked it. Secondly credit management is not activated .

Following are the details of LC created

Financ.doc.cat C Irrevocable confirmed

Request date 26-06-2010

Date of receipt 26-06-2010

Latest shipping date 26-06-2010

Validity end date 30.06.2010

Opening date 26-06-2010

Last date ocean BOL 26-06-2010

Presentation date 26-06-2010

Status of the LC is D "Document is available and can be used"

Schedule line date in Order is 26-06-2010, payment terms and Incoterms are same in LC and Sales order

[Former Member]

Dear Lakshmipathi,

Done Sir, I was doing a mistake of processing the same financial document and sales order. What i did was to create new FD and new Sales order, now the system is updating all the values in VXA1. But i do have few issue as below

1) When I create FD in VX11n the standard Payment terms and Inco terms assigned to the customer master is not fetched, how can it be done.

2) Different LC can be assigned to sales order with different Partner the system give only Information message that "Financial documents: Check: Partners Check Not OK" is this the standard

Regards

Vipin

Edited by: Vipin Borole on Jun 28, 2010 12:28 PM

[Lakshmipathi]

Though the link provided would give you an idea, logically, for export sales, if the despatch is made against an LC, system should not consider that customer for credit worthiness. This is due to the fact that in order to avoid these sort of payment issue only, exporters will insist to open an LC by the respective importer. Of course, this LC itself will be of different types like Revocable LC, Irrevocable LC etc., and in your case, if it is an irrevocable LC, straightaway, despatch can be made since the importers bankers have given guarantee for issuing payment.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi

Thank you for the answer the LC created is of irrevocable type, importers bankers have given guarantee for issuing payment, now what i want is that the system should not block the sales order when the payment guarantee is sure.

Regards

Vipin

[former_member187989]

Check this answered link