Financial documents/ Letter of Credit and down-payment

[former_member193516]

Hi,

I try to map requirements from business against solution in SAP.

There is a scenario as follows, where part of the sales order is covered through down-payment. This should be exempted from Letter of credit value.

Example

Sales Order value 1 Mio USD

Down-payment 0.2 Mio USD > paid immediately after sending out the request invoice (request is generated in SD from Sales order). Until payment, this would remain as the net exposure in the system.

LOC value should be only >> 0.8 Mio USD <<

Is there a solution in SAP to this? What would need to happen to enable this?

Cheers

Hein

[former_member274400 · Accepted solution]

Hi,

When you create sales order, for Letter of credit, you assign financial document. If you assign financial document then system will consider it for credit management. If you have down payment also, then do not assign financial document in sales order. In that case first system will consider down payment and then credit amount maintain in credit management.

Regards,

[former_member193516 · Accepted solution]

Thanks,

That does not answer my question.

So I should not have Financial document in Sales Order in that case? Where should I have it then?

What would be use of Financial document then?

To assign Financial document after down-payment is generated is not possible, as field is no longer open in Sales order once subsequent documents are created.

Is there a way to have or example down-payment amount excluded from Letter of Credit value. Please note that we use billing plans and we do have often as first activity creating the down-payment request.

Thanks + Regards

Hein

[jpfriends079 · Accepted solution]

Hello Hein

Well, for your requirement you have to go development.

For this you can use No credit check in TCode OVA8 for Define Automatic Credit Control for your desired combination of Credit control area, Risk class & Credit group.

Where you have to write a requirement with help of ABAPer.

OR

You can take assistance of FI guy and looking to define Reconciliation Accts Without Credit Management Update

Where In this IMG activity, you can cancel the credit management update function for certain postings by posting to an additional reconciliation account; the reconciliation account without credit management update.

When you make postings to the standard reconciliation account, the receivables total within credit management is then updated, but those postings made to the reconciliation account without credit management update are not.

In Japan, various receivables that are considered certain to be received are excluded from credit management update, including:

- Active prepaid/deferred items

- Payments by letter of credit

Hope this can assist you.

Thanks & Regards

JP

[Former Member]

Hi Hein,

We have similar challenges. Could you pl. share how you addressed the scenario of billing plan and LC

[Former Member]

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