letter of credit/payment guarantee

[Former Member]

my customer is giving letter of credit, can somebody enlighten me to how to configure letter of credit.

please tell me configuration of letter of credit, and how to compensate the sales order with documentary payments

if possible can somebody send me any realtime examples of configuring the same

my id is rajansapsd@gmail.com

thanks

[Former Member]

hi varada,

The letter of credit can be configured using financial documents in Foreign Trade Data....

Once you create L.C. master data using T. Code VX11N , then u can assign this to sales order at the header and also at the item level.

please check this link for more details :

http://help.sap.com/erp2005_ehp_02/helpdata/en/93/744947546011d1a7020000e829fd11/frameset.htm

Reward Points if useful.

Rgds

VIVEK.

[Former Member]

hi rajan,

please check this :

Process Of Letter of Credit for Imports

1. The Clearing agent ask for amount, the person who receive the product will give Letter of Authority to Clearing Agent. The clearing agent move to bank and take check.

For this purpose, we just issue LA.

2. Prepare Purchase for the Vendor from whom we are going to receive the product. There may be 2 or more Vendors.

1. Product cost to be transferred to Vendor A

2. Freight or Other Charges to Vendor B

3. Customs Duty and Others to Vendor C

Tcode : Me21n

3. First We have to pay Customs Duty to Commissioner of Customs after LA issued.

Entry : Customs Clearing a/c Dr

Cess on Custom a/c Dr

CVD Clearing a/c Dr

Cess on CVD a/c Dr

Special CVD a/c Dr

Vendor C a/c Cr.

T-code :MIRO or YMIROOTH

4. Cenvat credit for the product will be taken by person who handling Excise in that company

Entry : Cenvat Clearing a/c Cr.

RG23A Part II a/c Dr.

5. Clearing of Cenvat Credit

Entry : Cenvat Clearing a/c Dr.

CVD clearing a/c Cr.

Cess on CVD a/c Cr.

Special CVD a/c Cr.

6. After Bank payment they will transfter to us

Entry : Vendor a/c - Dr.

Bank a/c - Cr.

thanks

sadhu kishore