LC Amount and Credit Limit

[Former Member]

Hi all,

Kindly tell me one thing that If I have a customer xyz. The LC amount for that customer is 200,000 and the credit amount is 400,000.

If I create an order of 100,000 for that customer , then this amount will be reduced from credit limit of from LC amount or for both?

Please respond.

Regards,

Aisha Ishrat

ICI Pakistan Ltd.

[Former Member]

Resolved myself.

[Lakshmipathi]

Dear AI

Can you please let us know how you have resolved as it will be very helpful for all including myself.

Thanks

G. Lakshmipathi

ps:- Kishore - LC stands for Letter of Credit which will be a part in exports scenario

[Former Member]

well i just checked in dev server.

If there is an LC of 20,000 and customer's credit limit is 20000.then the order amount will be deducted either from LC amount or credit limit depends upon the payment term.

if the payment term is advance payment then amount will be deducted from LC and if the payment term is credit like 30 days credit or 40 days credit then the amount will be deducted frm credit limit.

[Lakshmipathi]

Thanks for the updation.

[Former Member]

Hello,

Nice to read ur solution, since I was looking for the same since last 2 days.

One more query on the same lines. How does the system respond directly. What is the linkage or the program where it is written that if the payment terms is credit then deduct from cr mngt and if advance payment, go for lc.

Secondly, if i have set the cr management at delivery level and my payment term is credit to customer, how will the system react.

Can u pl check and let me know if possible.

Eagerly waiting to hear from u soon.

Thanking you for the informative response.

Thanks and regards,

Avnesh Kamdar

[Former Member]

well if you set the credit management at delivery level (means at creation of DA) then system will stop you to create DA if credit limit exceeds for the customer and you can make DA if the customer is within the credit limit.

Regards,

Aisha Ishrat

ICI Pakistan Ltd.

[Former Member]

Sir,

What is the linkage or the program where it is written that if the payment terms is credit then deduct from cr mngt and if advance payment, go for lc.

Awaiting your valuable input.

Thanks and regards,

Avnesh

[Former Member]

wht is LC amount????????

[Former Member]

200,000.

[Former Member]

LC stands for need abbreviation