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Letter of Credit (from Treasury) does not skip Credit check, should not consume Credit Limit

kapil_mehta
Participant

Hi

We have performed Mock migration from ECC to S4H 2020, and facing problem in integration of Trade finance with FSCM Credit Management. In ECC system, Customer created Letter of credit(LC) and Bank Guarantee using tcode VX11N and this was attached to Sales order. Expectation is that if LC amount is more than amount of all assigned Open Sales order then Credit check should not be performed.

In S4H system, we created LC using tcode FTR_CREATE in Treasury module, and then assigned it in "Financial document" field in SO header > Billing document tab.
1. In S4 system, is this correct field in Sales order to update Letter of credit from TRM module ?
2. Assuming LC is correctly updated in SO, why credit exposure shows amount with "Credit exposure category" 100 ? Since LC is already present, Credit limit should not be consumed & Credit check should not happen. Is there a configuration to achieve this ? I have already checked Trade Fin configuration but could not find solution for this.

Regards
Kapil

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member674303
Participant
0 Kudos

Hi alex-tiamalex-tiam

I could not find standard solution, so in OVA8 I attached routine and within that wrote logic to set bypass_creditmanagement = 'X'.

Regards

Kapil

kapil_mehta
Participant
0 Kudos

Dear All

Please share your feedback about this issue.

In ECC Sales order are not blocked because of credit management check, if "Letter of credit" is assigned to Sales order. However post migration to S4H, same is not happening in system.

Regards

Kapil

former_member670702
Discoverer
0 Kudos

Dear Kapil

I have the same issue, any updates on possible solution?

Regards

Alex