Letter of Credit

[Former Member]

Hi Gurus,

Can one guide me regarding the configuration of Letter of Credit in SD Module. I am totally unaware of the same.

Thanks in advance.

Regards,

Mahendra

[Former Member · Accepted solution]

Hi Mahendra

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.

Give ur mail id.. i will send the doc. its not easy to make u understand that concept.

Regards

Message was edited by:

narendran vajravelu

[Former Member · Accepted solution]

Hi,

My email ID is m_chalke@rediffmail.com.

Thanks for your reply. I require configuration related to Sales Transaction with Letter of Credit.

Regards

Mahendra Chalke

[Former Member · Accepted solution]

Hi Mahendra Chalke

Mail send.

Reward if useful to u

[Former Member · Accepted solution]

Hi Narendran,

I have not received your emial. Please resend the same.

Regards,

Mahi

[Former Member · Accepted solution]

Hi mahendra

Pls. wait for some time.

Regards

[Former Member · Accepted solution]

Hi mahendra

Check ur mail now.

Reward if useful to u

[Former Member · Accepted solution]

Hi Mahendra

Reply back

Regards

[Former Member · Accepted solution]

Hi Narendra,

the document send by you is for Credit Limit. I want information on Letter of Credit (LC) for Export Sales. Please guide.

Regards

Mahendra

[Former Member · Accepted solution]

Hi,

Before you start config ...pls be sure all other credit setting are done like CCA, assignments..

goto SPRO

Credit Management/Risk Management

Receivables Risk Management

1. Define Forms Of Payment Guarantee

Maintain Forms (eg..)

01 0 C 01 Confirmed irrevocable letter of credit

2. Define and Assign Payment Guarantee Schemas

Define Payment Guarantee Schema

000001 Letters of credit

Attach the Forms of payment guarantee

10 01 Confirmed irrevocable letter of credit 0

3. Define Customer Determination Schema (same attach in Cust Master-billing)

4. Define Document Determination Schema

5. Assign Document Schema to Order Types

6. Define Payment Guarantee Schema Determination

Now Create L/C with Trx - VX11. (be carefull on dates, validity, amount, currency...)

In sales ord header --> Billing enter the Payment Guarantee Procc.

and the L/C for that customer.

One L/C can be attached with diff. sales ord. for same customer.

to see sales order for L/C trx- VXA1.

Note: when do billing (A/C posting) the amount will be updated in Sec. Receivable not receivables as for normal credit scenario in credit status(FD33).

pls reward if useful..

thanks

maity

[Former Member · Accepted solution]

Hi Maity,

Thanks for your reply.

I have not understood the message given by you in the Note. It will help to me if you explain the same in detail. Also what will be the accounting entries during Invoice Creation & how will be the accounting document created (i.e Integration with FICO)

Hoping you kind co-operation.

Regards

Mahendra

[Former Member · Accepted solution]

1. I have configured the LC and even created Financial Document for a customer

2. I have assigned the FD Number in order at header level and i have save the order

and the values are updating in Financial Doc.

3. Again i have created another order for the same customer,But this time i have

assigned the financial Doc Number in Delivery At header level under financial

processing TAB page.But the problem is that After doing the PGI and

save the delivery Doc The values in Financial Doc is not updating , Though the

system is showing that the delivery has been assigned to the financial Doc..

Please, if any body knows the solution for the above said prolem Do let me Know..

Regards

[Former Member · Accepted solution]

Hi,

please assign the Fin Doc. in Sales Order ...Billing tab..

It should work..

thanks

[Former Member · Accepted solution]

Hi maity,

At the order level The FD is working,But when i assign the FD in Delivery at header level then its not working...after assignment at delivery the values in Financial Doc is not updating(but it is updating when FD is assign in order),Even though i have created invoice with reference to the delivery..

Please if u cud get teh solution let me know..

Regards

Message was edited by:

shafi ahmed

Message was edited by:

shafi ahmed