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Former Member

LC Sales Scenario

Dear Experts,

We are facing issue in LC Sales.

  1. 1. For Example Customer asking Discount of $5000 on $1 Million LC. This should be given after delivering the complete material to customer, as per the (agreement). when all the deliverable reaches to customer latest date of shipment and Expiry date will finish.

Now the process of giving a credit of the discount begins. For example if we deliver him 1 million worth goods, the LC is completed. Now we will give him some cash back, How to map this scenario in the sap SD. Is there a solution to make a credit note request and then deliver him the material instead of the credit? On $ 1 Million LC sales We have to give discount $5000 to customer ($ 1 Million +$ 5000) how to map this scenario is there any idea.

  1. 2.Customer Opens LC of $ 3 Million, the agreement between customer and company is only $2.8 Million, customer giving 0.2 Million extra than agreement because the bank giving him the loan up to 3 Million. Until we finish the LC order $2.8 Million worth of material deliveries, the latest date of shipment and Expiry date will finish, now customer not ready to amend the LC and asking for dispatch the material worth of 0.2 Million. how to map this scenario in the SAP.

Best Regards,

MH

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3 Answers

  • Oct 29, 2015 at 08:20 AM

    For the first scenario, you can go with Rebate process as already suggested. For the second scenario, it is upto the Business to decide as to how their sales should be made. If their end customer is not willing to extend the LC, your client has to decide as to whether despatch can be made on CASH ON DELIVERY. If that is the case, you can very well create a new line item in the same sale order and change the Payment Terms to COD. From SAP point of view, you can make any changes as you want but the final concurrence has to come from your client side.

    G. Lakshmipathi

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  • Oct 29, 2015 at 07:04 AM

    Hi, check rebate processing for your purpose http://wiki.scn.sap.com/wiki/display/ERPLO/How+to+do+rebate+processing

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  • Oct 30, 2015 at 04:43 AM

    In addition to Mr Lakshmipathi's suggestion--You can settle the customers in either ways in SAP as mentioned below:

    1.Without material movement:Reducing the Account receivables by raising some credit memo or rebates procedure....

    2.With Material Movement: You can raise the free goods delivery process for this 5$.(SO type SDF-Subsequent free of charge delivery or ZERO Billing with free samples process)

    Note: What to follow will be at client's discretion.

    Phanikumar

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