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Transaction posting in Letter of credit (Treasury)

Hi All,

I have configured LC under Treasury --> Trade finance. I have created a deal with product type 85A for LC and settled the same but when im running TBB1 system is not generating accounting entries. It is giving below success message.

Above run is a test run, even if i do update run still it is giving same success message but no accounting document is generate.

After running TBB1 (update run) if I go and check the cash flow tab in deal it is appearing as below.

I would really appreciate if you could answer my below quires

1. It is saying "Fixed (not relevant for posting)", does it mean that these transactions wont post any accounting entries ?

2. If so, then how the accounting entries will be logged in SAP system ? Or is there any other t.code to be run for posting accounting entries for LC ?

3. Since im new to this process, It would be good if anyone could explain the steps need to be done after creating and settling the LC deal. Like what are the transactions should be posted, when it should be posted and what will be the journal entries ?

4. Is there any separate config is needed in "Account determination" for LC?

Thank you,

Partheban.S.V

tbb1-lc.png (32.8 kB)
ftr-lc.png (81.9 kB)
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  • Hi Rajeev,

    I hope you must have solved this query by this time. Could you please share the LC related accounting entries SAP generates at different stages ? I m not sure what entries should get generated at time of initiation, termination, presentation, etc. Should there be any entry for payment obligation? How to map the devolvement ?

    Hope to get your response.

    Thanks and best Regards

    Ramesh

Related questions

2 Answers

  • Posted on Mar 23, 2020 at 05:08 PM

    Hi,

    My issue resolved by doing the below step.

    Actually my update types were not set for "Relevant for postings" in below path.

    FSCM --> TRM --> TM --> General settings --> Accounting --> Link to Other Accounting Components --> Indicate Update Types as Relevant to Posting

    In the above path i have maintained update type pertaining to trade finance (TF*) and set the check box "Relevant" (which mean relevant for posting).

    After that TBB1 has posted journal entries for LC.

    Thanks,

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  • Posted on Jul 13, 2020 at 03:08 AM

    Hi Rajeev

    Can you please let me know what are the accounting entries that get posted for Letter of credit and Bank Guarantee

    Thanks a lot

    Raj

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