You are on page 1of 11


Financial document should be generated for attaching the Letter of Credit (LC) with the sales order.
This creates a document in Finance but does not do any postings in the ledger. This is purely used for
the purpose of tracking and monitoring the letter of credit and does not affect the payments /
collections. This is attached to the sales order to ensure that the sales order value does not go above
the LC value.

Before doing the LETTER OF CREDIT, Maintain the Customer payment guarantee procedure in
Customer Master Data (XD02) as 0001 and Terms of Payment.

And material should be without MRP View.

Then go for the easy access


EASY ACCESS PATH: SAP Easy access >> Logistics >> Sales and Distribution >> Foreign Trade/ Customs >>
Payment guarantee >> Documentary Payment >> Financial Document >> Create.

Click on And then you will be getting this screen

Maintain the fields as:

1. Financial document category: U Irrevocable Confirmed

2. Financial document type: 01

3. Company Code: 1000

Press 'ENTER' Or Click on to create FINANCIAL DOCUMENT


ENTER THE DETAILS: In Partner Data Tab & General Data

Customer: 11157

Ship-to party: 11157

Bank Country: LK (Sri Lanka) (Identifies the country in which the bank is located)
Bank Key: 12311 (Bank of Sri Lanka) (In this field, you specify the bank key under which bank data from
the respective country is stored)

Ext. Financial Document number: 12345 (Indicates the number of a financial document which is
generally assigned by the bank)

Financial doc. Value: 20,375.00 (this is imp) (Value of the financial document)

Letter.-of-credit currency: USD

Allowed overdraft %: 10% (Allowed overdraft percentage)

Terms of Payment: Z001 (Key for defining payment terms composed of cash discount percentages and
payment periods)


Click on Dates / Delivery dates Tab:


Enter Request date: 26.07.2010 (Identifies the date on which the financial document has been

Date of receipt: 26.07.2010 (Identifies the date on which the financial document has been received)

Latest shipping date: 28.07.2010 (Identifies the latest possible shipping date)

Validity end date: 21.09.2010 (Identifies the validity end date of a financial document)

Opening date: 22.06.2010 (Identifies the date on which the financial document has been opened. Bank)

Last date ocean BOL: 06.09.2010 (Identifies the latest possible date of the ocean bill of lading)

Presentation date: 15.08.2010 (Identifies the date on which the documents must be presented to the
Number of days: 120 Days (If the goods are delivered before the planned deadline, there is a time limit
within which the documents have to be presented at the bank. If this time limit is exceeded, the financial
document expires although the date specified in the Presentation Date field has not been reached)


Click on DOCUMENTS Tab


List of documents configured will be displayed. Enter the number of originals & copies sent and mark the
status as 'Completed'.

Click on BANK Tab


No mandatory information is required

The details which you maintained in the GENERAL DATA Tab all the details are automatically come to
here. If you want the other bank details like Negation bank or conformation bank or notifying banks, then
click on it and the click on BANK DATA button and maintain all required fields data.
If you want to maintain any text times then you can writ it in the TEXT Tab

Then click on STATUS Tab

This Status Place a Vital role during Sale Order creation as well as Letter Of credit creation

1. Maintain the Date and time of creation and if you want you can maintain the description

2. To use the Financial document in Sales order Click on D Switch

Document is available and can be


3. Then maintain date and time in the D field

Then Click on to check the document.

You have to get the STATUS as GREEN color

Then Save the Document.

Then Press Enter

And Click on

You will be getting the Financial Document number at the bottom

Then maintain this financial document number in the Sales order >> Header Data >> Billing document
Tab >> financial doc Number: 41

And maintain the % of Depreciation:

Then click on the Document.

Activate Letter of Credit in SD documents

Added by Milca Martins, last edited by Zsuzsanna Hartyani on Feb 27, 2013 (view change)

The purpose of this wiki page is to clarify how to activate Letter of Credit in the SD documents.

A letter of credit is required for example if a customer is selling expensive goods to a poor country and needs a guarantee of
payment. It works as follows:

The customer in the poor country contacts his bank who issues a letter of credit supporting the payment of the goods. They
contact the sellers bank and the process is fulfilled through the banks. Local bank = opening bank foreign bank = notifying
bank. The material is delivered to the bank in the foreign country. When they receive payment it is passed to the customer.
The money is then passed to the local bank and then on to the customer.

Path: sales & dist > Foreign trade > documentary payments > basic settings > risk management for FI

some prerequisites necessary in the customizing of the Credit Management area (SD-BF-CM) -> see note 18613
activate credit check for sales document types -> OVA7
assign document determination schema to order type -> OVFI
assign customer determination schema to customer master record (payer) > XD02 -> sales area -> billing
document -> field payment guarantee procedure
customer determination schema + document determination schema -> payment guarantee procedure ( OVFJ )
payment guarantee procedure defines which forms of payment guarantee can be used ( more than one allowed
the form of payment guarantee determines financial document category and financial document type ( VI52 )
financial document category and financial document define financial document indicator and bank
indicator ( VX53 )
bank indicator defines which bank functions can be used in the FD ( VX54 )
financial document indicator defines: ( VX52 )
o which documents must be used for the FD
o how does the FD look like: attributes, required fields, which fields must be checked when the FD is used in the
VX52 you set the criteria for the LOC, open/hidden/optional fields etc. If you set a flag by the field it will create an
incompletion entry when you create the letter of credit in VX11n
Creating a Financial Document
either transaction VX11N
or during order processing: billing -> extras -> financial document -> create
(internal call of VX11N / the financial document category and financial document type defined by the FIRST form
of payment guarantee in the payment guarantee procedure will be taken as default proposal for creating the FD)
Assigning an FD number to an sales order
must be done manually in the order on header or item level

if the FD no. is assigned in the header it is valid for all order items (provided that credit check is set to active in the
item category customizing)
system checks if the assigned FD no. fulfils the necessary requirements (values, dates, payer data etc.)
1. if the check is okay
a. credit status set to okay,
b. open value is reduced in the FD record (VX13N)
c. table S131 is updated (SE16)
2. if the check is not okay
a. credit status is set to not okay
b. order is blocked for delivery
In VA01 the log is only visible once, you can make a change to the payment terms and it is available again. Also
you must call the customer address manually or you get an incompletion entry
if no FD no. is assigned but required the credit status is set to not okay (header -> status)
status of the FD must be set to D so it can be used
either the whole value of an order item can be covered by the SD or nothing!
FD no. is split criteria for delivery creation! FD. no. is part of the delivery header. FD is also checked during
delivery note creation.
FD. no. is also part of the invoice header. Used just as a information field.
theres no FD check in the invoice
Important transactions:
VKM3 Release of a blocked SD documents
VX11N Create a financial document
VXA1 Assigned sales documents (display all assigned)
VXA2 Available FDs
VXA3 Blocked SD documents
VXA7 To simulate the assignment of an FD doc
Relevant coding
Order check: function unit RV_LOC_CHECK_ORDER_LINE_ITEM
o VBKD-LCNUM FD no. order (header and items)
o LIKP- LCNUM FD no. delivery header
o VBRK-LCNUM FD no. invoice header
Related Content
Related Notes
SAP Note: 1739363 LIPS-ABGES : Outbound Delivery Guaranteed with Zero %
SAP Note: 1744831 Letter of credit for import
SAP Note: 409393 Dokumentengeschft: Wertfortschreibung Auftrag, Lieferung