Payment terma related

[Former Member]

Hi,

I m seting the payments terms , the lsist provided to me has some terms stating as lette of credit or cash in adavnce wiht the net days and disc days specified ( for e.e 1% 10 days, 30 days net , letter of credit or jsut 30 days net, no disc - letter of credit or cash in advance ).

please let me know what loc and how it works or put into sap.

thanks

[Former Member]

Hi

A Letter of Credit is a specific form of resource related billing. Sponsored invoices are created by Accounts Receivable Shared Services using the resource related billing tools. These invoices are used as a basis for drawing funds from a sponsor based on an existing letter of credit agreement with that sponsor.In most foreign trade transactions for which you create a trading contract for export, if the goods are shipped to a customer in a foreign country, a letter of credit is used for payment or settlement of the goods. If an appropriate payment guarantee procedure is assigned, the system checks the balance of the letter of credit for the customer.

In domestic trading business, a credit check can also be performed, if the customizing and master data settings are properly maintained.

Also check out this link

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Regards

Genie

[Former Member]

http://www.sap-basis-abap.com/sapfj020.htm

for u dude..enjoy

Regards

Anantha