Risk Management with LoC

[Former Member]

Hello Experts

Can anyone pls guide me, whats the _best way to configure risk management with Letter of credit?**_

The scenario is: Automatic credit control is configured for a customer.Now, if this customer gives LC,credit Management should be deacivated.

Now, if we give the LC number in sales order header "Financial doct number", the LC amount will not flow to credit management".

The SOLUTION is, to configure risk management with Letter of credit.

whats the best way to do this?

Regards

Sumanth Gururaj

[Former Member · Accepted solution]

Hi

You need to create a routinge and maintain OVA8 so that it will approve the credit status based on the FI Document .Take the help of Abaper.

go to OVA8 - in Document control tab you canable to see NO CREDIT CHECK. Here you need to maintain the Routine.

I hope it will helpful for you.

also check the oss note # 0303409

Regards,

SK

Edited by: Mastan Shaik on Aug 19, 2010 11:53 AM

Edited by: Mastan Shaik on Aug 19, 2010 11:56 AM

[Former Member · Accepted solution]

Dear Mastan

Don't you think, configuring Risk Management with LoC as Payment gurantee is more easier?

When we enter the LoC # in sales order header;Field: "Financial doct #",then the amount doesnt flow to credit management.

How do I configure risk management?

Rgds

Sumanth

[Former Member · Accepted solution]

Hi

Asper myt knowledge you can complete these settings:

MM - Purchasing - Foreign trade /customs - Documentary payments - Basic settings

1. Define a FI document type.

2. Define the Bank Functions

3.Define Indicators for FI documetn. here you can maintainthe controls for FI document process in the order.

4. Define bank indicators.

same path in Relations

1. specify the controls of Banks in FI document

2. Specify the FI document control

Same path in Risk management of FI document

1. Define forms for payment guarantee procedure

2. Define and assign payment gurantee schema

3. Activate documentary payments per itemcategory

I hope it willhelpful.

Regards,

SK