You are on page 1of 9

EXIM MENA Screen Documentation

Overview
The Logistics Add-On for MENA solution offers organizations dealing with import and export operations
enhanced functionalities in in the letter of credit management and bank guarantee process.

Before you use this product, configure your SAP system by setting up your user and assigning them
necessary roles. A role is a collection of activities that allow a user to use one or more business scenarios
in an organization. As part of this solution, to enable you to access the product using either NetWeaver
Business Client (NWBC) or the portal, SAP delivers the MENA_EXIM role.

To access the product using NWBC, assign the above-mentioned role to the user using transaction SU01.
NWBC is the SAP NetWeaver Business Client that provides an efficient, modern, and attractive
environment for hosting WebDynpro applications and other content.

If you want to access the product through the portal, first upload the role to the portal, and then assign
the role to the user.

After you assign the role to the user, use the relevant URL to launch NWBC or the portal. The folder
EXIM MENA is now visible at the top of the screen. When you choose the EXIM MENA folder, the system
takes you to the product launch pad. The launch pad contains links to various applications.

The applications available as part of the Logistics Add-On for MENA solution includes:

 Letter of Credit Request


 Letter of Credit
 Bank Guarantee Request
 Bank Guarantee

Caution
To avoid problems with ZCI-based interactive forms application, ensure that you have updated ZCI
scripts in your system to the latest version. For more information, refer to SAP Note 1077953.
Letter of Credit

Letter of Credit (LoC) is a financial statement issued by the bank to obtain payment for goods. Banks in
India associate themselves with the letter of credit in various capacities such as advising bank, issuing
bank, transferring bank, and reimbursing bank. Once the letter of credit is confirmed, the advising bank
guarantees payment only if all stipulations in the letter of credit are conformed to exactly.

Prerequisites

Ensure that you have performed the following settings:

 Maintained agent codes in Customizing for Logistics - General, under Tax on Goods Movements
-> Middle East and North Africa (MENA) -> Export-Import -> Workflow -> Define Agent Codes
 Maintained the workflow level and approver in Customizing for Logistics - General, under Tax on
Goods Movements -> Middle East and North Africa (MENA) -> Export-Import -> Workflow ->
Define Workflow Levels and Approvers
 Defined document types in Customizing for Logistics - General, under Middle East and North
Africa (MENA) -> Export-Import -> Letter of Credit and Bank Guarantee -> Define Document
Types
 Defined bank functions in Customizing for Logistics - General, under Middle East and North
Africa (MENA) -> Export-Import -> Bank Details -> Define Bank Functions
Ensure that you mandatorily define the following bank functions:
o A – Advising Bank
o I – Issuing Bank
 Defined bank charge types in Customizing for Logistics - General, under Tax on Goods
Movements -> India -> Import-Export -> Letter of Credit -> Define Bank Charge Types
Note that you must maintain the charge type SP for all shipment postings.
 Defined accounting keys for bank charge types in Customizing for Logistics - General, under
Middle East and North Africa (MENA) -> Export-Import -> Determine Accounting Keys
 Defined number range intervals in Customizing for General, under Middle East and North Africa
(MENA) -> Export-Import -> Maintain Number Ranges
Letter of Credit Request
You use the Letter of Credit Request screen to edit and create letter of credits for imports.

Activities

To create a letter of credit request, perform the following steps:

1. On the MENA Workbench screen, under Letter of Credit Request, choose New.
2. On the Letter of Credit Request: New screen, enter the following data:
 Company code
 Vendor
 Letter of Credit document type
Select the For Domestic Use checkbox, if you want to create a letter of credit for
domestic transactions.
Note that if you select this checkbox, the vendor must be a domestic vendor.
3. Choose the Continue pushbutton. The system takes you to the Select Purchase Order(s) screen.
4. Search the purchasing document(s) for which you want to create a letter of credit by choosing
the Search pushbutton.
5. Select the relevant purchase order and choose the Add Purchase Order to Selected List
pushbutton. This entry is displayed under Selected Purchase Order(s).
6. Choose Next. You are now on the Letter of Credit Request Processing screen.
7. Under General Data, enter the valid from date, valid to date, and the validity type. If the choose
the validity type as Other, then enter the relevant date.
8. Under Letter of Credit Amounts, enter the LC represent, exchange rate, and LC terms. If you
choose Percent as LC represent, enter the relevant value in the LC Percent field. If you choose
Deferred as LC Terms, enter the relevant value in the LC Usance Days field.
9. Enter the relevant values under Shipping Details.
If you select the LC Multi-Shipment checkbox, then enter the number of shipments.
10. Choose Next. You are now on the Bank Details and Documents screen.
11. Under Bank Details, enter the bank country for the advising bank. Bank country for the issuing
bank is defaulted to OM.
Also enter the bank key for both issuing bank and advising bank.

Note
Apart from the issuing bank and advising bank, you can also enter various other banks
such as negotiating bank and opening bank.
12. Under Bank Charges, choose the Add pushbutton to add a bank charge type.
13. Choose the bank charge type, enter the bank charges and currency.
14. Under Documents, enter the supporting documents required for processing a letter of credit by
choosing the Add pushbutton.
You configure the document types in Customizing for ?.
15. Choose Next. The system displays the letter of credit request form in an editable Adobe form
(PDF).
16. Fill in the details and choose the Next pushbutton. You are now on the Review&Submit screen.
17. Choose the Submit pushbutton to create the letter of credit request and submit for approval.
The letter of credit request now needs to be approved internally by an authorized personnel.
The personnel can either accept or reject the letter of credit. If rejected, the status of the letter
of credit is set to Rejected(Internal). The Rejected letter of credit can be changed and
resubmitted for Approval.
Letter of Credit for Imports
Create a letter of credit under this category for those goods and products that you want to import.

A bank issues an import letter of credit on behalf of the importer under the following circumstances:

 Importer is importing goods within one's own country


 Importer buys goods from within the country with the intention to sell it to another country
 Exporter who is executing a contract outside his/her country wants to import goods from a third
country to the country where he/she is executing the contract

To create a letter of credit for imports, perform the following steps:

1. On the MENA Workbench screen, under Letter of Credit, choose New.


2. On the Letter of Credit: New screen, enter the following data:
 Company code
 LC request number
3. Choose the Continue pushbutton. The system takes you to the Letter of Credit Processing Data
screen.
4. Under General Data, enter the letter of credit external number and validity type. If you choose
the validity type as Other, then enter the relevant date.
5. Under Letter of Credit Amounts, enter variance and letter of credit extended amount values. If
the LC Terms is At Sight, you can change the Usance Days, if required.
6. Choose Next. You are now on the Bank Details & Document Sets screen.
On this screen, you can only view the details/entries. No changes are allowed.
7. Choose Next. You are now on the Review and Submit screen.
8. Choose the Submit pushbutton to create the letter of credit and submit for approval.

Note
Choose the Save Draft pushbutton if you want to save the changes made to the letter of
credit. The system only saves the letter of credit but does not submit it for approval. You
can perform this action at every step.

The letter of credit now needs to be approved internally by an authorized personnel. The
personnel can either accept or reject the letter of credit. If rejected, the status of the letter of
credit is set to Rejected(Internal). The Rejected letter of credit can be changed and resubmitted
for Approval.

Note
You cannot edit a letter of credit when the status is In Process or Confirmed.
Bank Guarantee

Bank guarantee is a surety/guarantee issued by any bank or lending institution to provide payment to
another bank or lender in the event of default. That is, if the debtor fails to settle a debt, the bank
guarantees a sum of money to the beneficiary/lender.

Prerequisites

Ensure that you have performed the following settings:

 Maintained agent codes in Customizing for Logistics - General, under Tax on Goods Movements
-> Middle East and North Africa (MENA) -> Export-Import -> Workflow -> Define Agent Codes
 Maintained the workflow level and approver in Customizing for Logistics - General, under Tax on
Goods Movements -> Middle East and North Africa (MENA) -> Export-Import -> Workflow ->
Define Workflow Levels and Approvers
 Defined document types in Customizing for Logistics - General, under Middle East and North
Africa (MENA) -> Export-Import -> Letter of Credit and Bank Guarantee -> Define Document
Types
 Defined bank functions in Customizing for Logistics - General, under Middle East and North
Africa (MENA) -> Export-Import -> Bank Details -> Define Bank Functions
Ensure that you mandatorily define the following bank functions:
o A – Advising Bank
o I – Issuing Bank
 Defined bank charge types in Customizing for Logistics - General, under Tax on Goods
Movements -> India -> Import-Export -> Letter of Credit -> Define Bank Charge Types
Note that you must maintain the charge type SP for all shipment postings.
 Defined accounting keys for bank charge types in Customizing for Logistics - General, under
Middle East and North Africa (MENA) -> Export-Import -> Determine Accounting Keys
 Defined number range intervals in Customizing for General, under Middle East and North Africa
(MENA) -> Export-Import -> Maintain Number Ranges
Bank Guarantee Request
You use the Bank Guarantee Request screen to edit and create bank guarantee requests for exports.

Activities

To create a bank guarantee request, perform the following steps:

1. On the MENA Workbench screen, under Bank Guarantee Request, choose New.
2. On the Bank Guarantee Request: New screen, enter the following:
 Company code
 Customer
3. Choose the Continue pushbutton. You are now on the Select Sales Order screen.
4. Search the sales order(s) for which you want to create a bank guarantee.
5. Select the relevant sales order and choose the Add Sales Orders to Selected List pushbutton. This
entry is displayed under Selected Sales Order(s).
6. Choose Next. You are now on the Bank Guarantee Request Processing screen.
7. Under General Data, choose the Document Type.
Under Dates, enter the valid from date and valid to date.
Under Bank Guarantee Req. Amounts, the system fetches the amount, currency, and exchange
rate details from the selected sales order(s).
8. Under Bank Details, enter the Bank Country for the advising bank. Bank country for the issuing
bank is defaulted to OM.
Also enter the bank key for both issuing bank and advising bank.

Note
Apart from the issuing bank and advising bank, you can also enter various other banks
such as negotiating bank and opening bank.
9. Choose Next. You are now on the Review and Submit screen.
10. Choose the Submit pushbutton to create the bank guarantee request and submit for approval.

Note
Choose the Save Draft pushbutton if you want to save the changes made to the bank
guarantee. The system only saves the bank guarantee but does not submit it for
approval. You can perform this action at every step.

The bank guarantee request now needs to be approved internally by an authorized personnel.
The personnel can either accept or reject the bank guarantee. If rejected, the status of the bank
guarantee is set to Rejected(Internal). The Rejected bank guarantee can be changed and
resubmitted for Approval.
Bank Guarantee for Exports
Create a bank guarantee under this category for those goods and products that you want to export.

A bank guarantee is issued by the issuing bank under the following circumstances:

 The debtor enjoys credit facilities with the issuing bank


 The debtor (customer/buyer) is able to reimburse the bank by fulfilling all of the contractual
obligations and not commit any default

To create a bank guarantee for exports, perform the following steps:

1. On the MENA Workbench screen, under Bank Guarantee, choose New.


2. On the Bank Guarantee: New screen, enter the following:
 Company code
 Bank guarantee request number
3. Choose the Continue pushbutton. You are now on the Bank Guarantee Processing Data screen.
4. Under Selected Sales Order(s), the system displays the relevant sales order selected at the time
of bank guarantee request creation.
If you want to replace the sales order, choose the Search and Assign pushbutton. Search for the
sales order(s). Select the relevant sales order and choose the Add Sales Orders to Selected List
pushbutton. This entry is displayed under Selected Sales Order(s).

Note
Choose the Save Draft pushbutton if you want to save the changes made to the letter of
credit. The system only saves the letter of credit but does not submit it for approval. You
can perform this action at every step.

5. Choose Next. You are now on the Bank Details & Charges screen.
6. Under Bank Charges, enter the bank charge type, bank charge, and the currency by choosing the
Add pushbutton.
7. Choose Next. You are now on the Review and Submit screen.
9. Choose the Submit pushbutton to create the bank guarantee and submit for approval.

The bank guarantee now needs to be approved internally by an authorized personnel. The
personnel can either accept or reject the bank guarantee. If rejected, the status of the bank
guarantee is set to Rejected(Internal). The Rejected bank guarantee can be changed and
resubmitted for Approval.

Note
You cannot edit a bank guarantee when the status is In Process or Confirmed.