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Letter of credit maintenance for order and delivery documents

Former Member
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Hi Friends,

As there are three places where we can maintain Letter of Credit ( Financial documents)

1. Order Header data

2. Order Item data

3. Delivery Header data

What is the importance of all these and ideally where shd maintain ?

kindly guide


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Answers (2)

Answers (2)

Former Member
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Hi Shailesh,

There could be a scenario where some products could get a less value guarantee from banks and similarly there could be few items which could receive guarnatee for the full value. If you want to maintain it seperately you can activate loc at item cat level and assign the same at item level. This is ideally meant for reporting purposes.

Ideally you can maintain it at header level and through copy control the same is passed on to delivery too. And more issue in this case is that the LOC value the client would want to consume it only after PGI as not all the sales orders would result in delivery. For this purose certain companies assign it at delivery level.

Kind Regards


Former Member
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Process Of Letter of Credit for Imports

1. The Clearing agent ask for amount, the person who receive the product will give Letter of Authority to Clearing Agent. The clearing agent move to bank and take check.

For this purpose, we just issue LA.

2. Prepare Purchase for the Vendor from whom we are going to receive the product. There may be 2 or more Vendors.

1. Product cost to be transferred to Vendor A

2. Freight or Other Charges to Vendor B

3. Customs Duty and Others to Vendor C

Tcode : Me21n

3. First We have to pay Customs Duty to Commissioner of Customs after LA issued.

Entry : Customs Clearing a/c Dr

Cess on Custom a/c Dr

CVD Clearing a/c Dr

Cess on CVD a/c Dr

Special CVD a/c Dr

Vendor C a/c Cr.


4. Cenvat credit for the product will be taken by person who handling Excise in that company

Entry : Cenvat Clearing a/c Cr.

RG23A Part II a/c Dr.

5. Clearing of Cenvat Credit

Entry : Cenvat Clearing a/c Dr.

CVD clearing a/c Cr.

Cess on CVD a/c Cr.

Special CVD a/c Cr.

6. After Bank payment they will transfter to us

Entry : Vendor a/c - Dr.

Bank a/c - Cr.

Give ur mail id.. i will send the doc. its not easy to make u understand that concept.



Former Member
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Hi Srikanthraj,

Thanks for the answer, but you have given the details abt MM part, but I want it in Sales order and delivery document.

Plz guide me as to what is the importance of maintaing the LC fields in Order - Header/Item and Delivery header


Active Contributor
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Dear Shailesh

The L/C details at Header Level in sale order will be copied to Delivery Header. You cannot key in the VX11N document reference in delivery. It has to be maintained in sale order only.


G. Lakshmipathi