Letter Of Credit

[Former Member]

Hi,

Is there any necessity to activate credit management in case of letter of credit??Can anyone send me the configuration details of letter of credit.my mail id is -<removed by moderator>.

Kindly Guide.

Wram Regards

Somnath

[sridhar_muthekepalli3 · Accepted solution]

Hi:

Refer to this documentation

www.sap-img.com/sap-sd/credit-management.htm

Purpose fo Credit Managment

With an increased number of companies running into financial difficulties, credit management within a sales organization is an important tool to manage the risk of loss of receivables. Additionally offering unique credit terms may be the only way to win a buyer from the competition. Therefore a company should not eliminate the credit risk, but rather manage the risk. To make fast and efficient credit decisions, a credit manager needs internal and external credit information, coming from different systems throughout the whole company

You have not mentioned Letter Of Credit for exports or imports

For Exports, refer to

Logistics - Sales and Distribution - Foreign Trade/Customs

For Imports, refer to

www.sap-img.com/financial/process-of-letter-of-credit-for-imports.htm

Refer to this documentation also

http://help.sap.com/saphelp_gts71/helpdata/en/29/201242b40dca7ee10000000a1550b0/content.htm

Please let me know if you need more information.

Assign points if userrful.

Regards

Sridhar M

Edited by: Sridhar M on Jun 2, 2008 5:50 PM

[Former Member · Accepted solution]

Hi,

Mine is a exports process...Is it necessary for me to maintain credit control area for the case of letter of credit.I dont have any credit management scenario as such in my organisation.Even though do I need to maintain credit management in case of letter of credit??

Regards

Somnath

[Former Member · Accepted solution]

Hi

If you want the user to create and attach Letter of credit for each sales order then you need to activate credit managment else it is fine.

And even after activating credit management you can release any order using VKM3 without preparing and attaching any financial document to sales order.

Reward points if helpful.

Regards,

Nimit

[Former Member · Accepted solution]

Hi,

The user will attach letter of credit only in case of exports sales order.Is it necessary for maintaining credit management then.Will I get a check if the billing value exceeds lc value without maintaining credit management.

Kindly guide.

Regards

Somnath

[Lakshmipathi · Accepted solution]

Dear somnath

Yes you cannot invoice over and above the L/C value if you assign it to a exports sale order even if you have not maintained credit limit for that customer.

thanks

G. Lakshmipathi