Tracking Bank guarentee for PO

[Former Member]

Requirement:

we have a requirement to track the bank guarentees issued by VENDOR in case of advance payments made or as performance guarentee. We need to monitor the validity of these bank guarentees with respect to individual PO.

Scenario:

Company "ABC" orders material " M1 " with vendor "XYZ".

XYZ demands for 100 % advance payment. Since the vendor is new to ABC, to avoid risk ABC demands for a bank guarentee, which ABC can use to reclaim the amount paid from the respective bank, in case if XYZ fails to deliver the material.

XYZ provides a bank guarentee to ABC, issued by " BANK 1" covering a value of " X" for a specific validity period.

XYZ fails to deliver the material. ABC shows the PO copy and Bank guarentee document to BANK 1 within the validity period to claim the money. "BANK 1" after verifying that XYZ could not deliver the material, pays the value "X" to ABC.

Here if ABC claims to encash the BG in BANK 1 after the validity date, ABC's claim will be rejected.

Hence to monitor the BG's issued by vendors, ABC requires a system where it can record the BG details, PO wise and can monitor the validity dates to take appropriate action.

P.S:

In SD module, we do have this facility to tract Bank guarentees for sales orders.. we use VX11N to create financial documents. But these are only for customers. NOT FOR VENDORS. similarly we need for vendors also.

-- Sathish

[Former Member]

Hi

I hope, Even for Vendors(MM) also you can use VX11N to create payment gaurantee.

Go to path Easy access>Logistics>Material Mgmt>Foreign Trade/customs>Payment gaurantee>documentary payments>financial documents.

Thank you,

[Former Member]

Dear Mr. Ravi,

The menu path given is for VX11N tcode where we create FD's for customers. Similarly I need for VENDORS also. Please suggest.

-- Sathish K B

[Former Member]

This feature is not available in Std SAP. we are going for a third party module integrated with SAP.

Closing the thread.

-- Sathish KB