Letter of Credit

[Former Member]

I am creating an irrevocable letter of credit using transaction VX11N and then assigning it to a sales order at the header level. On assignment, however, the system is not consuming the amount from LC. The document check is OK and system is allowing me to proceed with creation of del doc and subsequently the invoicing. However, at no stage is any amount consumed from LC. Why can this be so?

[jpfriends079]

See, there is no account entries in Sales Order and Delivery which can effect payment accounting entries.

So, when you are billing and posting to accounts, then only there will be entries in customer for receivables.

Hope this can assist you in understanding.

Thanks & Regards

JP