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ERP Financials / / Accounts Payable and Accounts Receivable

Letter of Credit (FI)

Created by Guest, last modified by Nathan Genez on Jan 26, 2009
Table of Contents
Introduction.4

1.

Overview..5

3.

License.9

2.

General Settings.8

4.

LC Imports.45

5.

BOE, Bond, Document Set.66

6.

Pre-requisites.83

Introduction

As in standard R/3 customizing, elaborate customizing features have been provided in OptiTrade: Imports so that this product can be tuned to meet the business requirements of any industry. The

Configuration Guide gives you step-by-step guidelines to customize OptiTrade : Imports.

1. Overview

OptiTrade-Imports contain the following customizing options based on the respective functionality.

1.1 License

Master data maintenance-

Define license types

Define code types

Define EXIM codes

Define codes

Define material groups

Define Standard IO Norms

Define logical groups
Define profiles

Define DEPB rates

Define replenishment rates

Define license documents

Maintain Authorised Signatory.

Application Rates.
Unit Code

Maintain Opening Balance

Assignments-

Define license class

Duty rates to license types

Procedure to License

EXIM Attributes to asset

Materials to standard I/O Norms

Material groups to materials

Material group to Reg. number and FDA Number

Obligation split details to EPCG license types
Logical groups to licenses

Screen field settings to license types

Output Control

Control data maintenance-

Maintain license tracking number

Miscellaneous 1.2 Letter of Credit-Imports

Master data maintenance

-

Company settings

Define code types

Code settings
Code master
LC types

Bank types

Text objects

Additional fields
Message type
Mail list

LC Customization (Amendment)

Assignments
-

Screens to activity

Output Control
-

Define Output Types

Output (Print, Screen, EDI) Enabling

1.3 Bill of Entry, Bond and Document capture

Company Settings
Assignments-

Assign procedure / tariff to material

Master data

Duty calculation procedure

Tariff / Notification maintenance master

Procedure maintenance Master
Bond types

Document Customisation
Define Code types
Define Codes

Insurance Rates

Document Set Customisation

Payment Requisition Codes

Duty Drawback

Duty Drawback All Industry Rate

2. General Settings
Access the IMG for customizing IMPORTS:

Via menu

Tools Customizing

Via transaction code

/OBIZ/IMP

The following screen with the IMG appears

Figure 2.1 Customizing initial screens

3. License
Getting Started
To access the IMG for customizing License Module:

Via menu

Tools Customising License (from main menu)

Via transaction code

/OBIZ/ZL99

The following screen with the IMG appears:

Figure 3.1 IMG for License customisation

Master data
License Class
License refers to a group of licenses having similar properties.
E.g.: - Duty Free Licenses

Select from Tools Customizing License Master Data Define license class
Figure 3.2 License Class

License Type
All the licenses that come under the purview of this module have to be defined here. The license types should be defined for each of the license classes already defined.
Select from Tools Customizing License Master Data Define license types

Figure 3.3 License types

EXIM Codes
These are identifiers of the materials exported or imported, as specified by the DGFT.
Select from Tools Customizing License Master Data Define EXIM codes

Figure 3.4 EXIM codes

Code Types
Codes that are for identifying data are grouped under different heads and each of these is called a code type. To define a code type:

Select from Tools Customizing License Master Data Define code types
Figure 3.5 Code Types

Codes
All the codes used in the License module and their descriptions are maintained in the code master. To define a code:

Select from Tools Customizing License Master Data Define codes

Figure 3.6 Codes

Material Groups
The material groups defined here will be used at the time of applying for a license. This material group will be used while proposing the export items. To define a material group:
Select from Tools Customizing License Master Data Define material groups

Figure 3.7 Material groups

Standard IO Norms
The Standard Norms as specified by the DGFT are defined here. To define a SIO norm:
Select from Tools Customizing License Master Data Standard IO Norms
Figure 3.8 Standard IO Norms

Logical Groups
The fields in the data capturing screens are logically grouped and each group has been maintained in a screen. Such a screen is called a logical group. All such logical groups defined in the system

should be maintained as part of master data maintenance. It is also required to specify which document type, the logical group belongs to (e.g.: - to the letter of credit document or benefit document).
Select from Tools Customizing License Master Data Define logical groups

Figure 3.9 Logical groups

Profiles
Select from Tools Customizing License Master Data Define Profiles

Along with the license application you need to submit the importer / exporter profile. This profile is being maintained through this customization in the IMG.

Figure 3.10 Initial screen for defining profiles

Create profile
For this function the system will ask for profile number, you have to give it in the following popup.
Figure 3.11 Profile Number

Then you will navigate to the profile details entry screen.

Figure 3.12 Profile Details

The system will navigate you to the area where you can enter the details of director board by pressing the "Director Board" button on the standard toolbar.

Figure 3.13 Director Board Members

You can give the details of assets by navigating to the respective screen. To do this, press the "Assets" button on the application toolbar.

Figure 3.14 Assets

DEPB Rates
Under DEPB, an exporter is eligible to claim credit as a specified % of fob value of exports made in freely convertible currency. The credit shall be available against such export product and at the rate

specified by DGFT. Export under DEPB is permitted only if the DEPB rate is specified by DGFT.
Select from Tools Customizing License Master DataDefine DEPB rates

Figure 3.15 DEPB Rates

Replenishment Rates
Select from Tools Customizing License Master Data Define Replenishment rates
Figure 3.16 Replenishment Rates

License Documents
All the documents required along with a license application are specified here. This IMG activity has to be carried out in order to configure output control (and printing) of the documents.
Select from Tools Customizing License Master Data Define License documents

Figure 3.17 License Documents

Maintain Authorised Signatory

Here the user can enter the details of the Authorised Signatory. This information will be used while making a license application.

Select from Tools Customizing License Master Data Maintain Authorised Signatory
Figure 3.18 Authorised Signatory
Application Rates

Through this activity, the application fee details for different types of Licenses as specified by the DGFT can be maintained.
Select from Tools Customizing License Master Data Application rates
Figure 3.19 Application rates
Unit Code

The UoM (Unit of Measure) and the Unit codes that are used in Imports are maintained using this activity. This data is used in the License application.
Select from Tools Customizing License Master Data Unit Code

Figure 3.20 Unit Codes

Maintain Opening Balance

The user can enter the Opening balance corresponding to the license type, license number and the financial year. This information is used in the printing of 'DEEC Receivable Workout'.
Select from Tools Customizing License Master Data Maintain Opening Balance

Figure 3.21 Opening balance

Assignment
Assign duty rates to License types

For each license type, the duty rate has to be assigned. This IMG activity has to be carried out in order to enable customs duty calculation for each license at the license application stage.
Select from Tools Customizing License Assignment Assign Duty rates to License types

Figure 3.22 Duty Rates to License Types

Assign Procedures to License types

In OptiTrade: Imports, the customs duty calculation can be customized to form a duty calculation procedure. The maintenance of a duty calculation procedure is explained in the bill of entry section. In

this activity, the user can assign a particular procedure to a license type so that customs duty calculation for the license type can be carried out at the time of utilizing the license.
Select from Tools Customizing License Assignment Assign duty rates to license type Assign Procedures to License types

Figure 3.23 Procedures to License

Assign EXIM attributes to assets

Through this activity, the user can assign different EXIM attributes to different assets.

Select from Tools Customizing License Assignment Assign EXIM attributes to assets
Figure 3.24 EXIM attributes to assets

Assign material Groups to materials

Select from the Tools Customizing License Assignment Assign material Groups to materials
Figure 3.25 Material group to Material

Assign materials to standard I/O norms

Select from Tools Customizing License Assignment Assign materials to standard I/O norms
Figure 3.26 Material groups to SION

Export material group to Reg. Number & FDA number

This activity is to assign the material group to the registration number and the Food and Drug Administration (FDA) Number.
Select from Tools Customizing License Assignment Export material group to Reg. Number & FDA number
Figure 3.27 Export material - Reg. No FDA no.

Assign obligation split details to EPCG license types

This assignment is necessary for EPCG licenses and is required for preparing the redemption statements.
Select from Tools Customizing License Assignment Assign obligation split details to EPCG license types
Figure 3.28 Obligation Split to EPCG

Assign logical groups to licenses

This assignment must be carried out for assigning different logical groups to different license types based on the activity to be carried out. This assignment makes sure that only those logical groups will

be visible to the user for the particular license type and the activity chosen.

Select from Tools Customizing License Assignment Assign logical groups to licenses

The user can select from the possible values for license type and the activity code using F4 help.
Figure 3.29 Logical group to licenses

The user can navigate to the following screen by pressing the Enter key and on this screen he can choose the different logical groups required for the particular license type and activity code. The logical

groups chosen here will be available for screen field level customization. The user has to click the 'Save' button to save the settings.
Figure 3.30 Logical groups to license type

Assign screen field settings to license types

Through this activity the screen field level customization for the logical groups assigned to a license type and activity can be carried out. The screen fields can be set to any of the required modes

depending on the activity.

Select from Tools Customizing License Assignment Assign screen field settings to license types
Copy Settings

More Details

Figure 3.31 Screen field setting to license type

The user can navigate to the detail view by clicking the 'More' button. Also the user can copy the settings from an existing on by using the 'Copy' functionality.
The detail view for the screen settings is given below.

Figure 3.32 Screen Settings

By default, the screen field attribute will be set to optional. After selecting the required attributes for each of the screen field the user has to click the 'Save' button to save the corresponding settings.

Output control
In this activity the different layouts and form routines required for issuing output of license documents can be maintained.
Select from Tools Customizing License Output control

Figure 3.33 License Layout

Control data maintenance

With this activity the user can maintain the number range interval for license tracking number. In all, six intervals have to be maintained viz. '01', '02', '03' '04' '05' and '06'. The user can set own values for
the interval range.

Select from Tools Customizing License Control Data Define Number Ranges Maintain license tracking number

Figure 3.34 License Tracking Number

Miscellaneous
In this activity the user can maintain some miscellaneous settings for the imports module. This setting is mainly required for the exchange rate type that is to be used for the imports module.
Select from Tools Customizing License Miscellaneous

Figure 3.35 Miscellaneous

4. LC Imports
Getting Started
To access the IMG for customizing Letter Of Credit Module:

Via menu

Tools Customising Letter of Credit (from main menu)

Via transaction code

/OBIZ/ZQ40

The following screen with the IMG appears

Figure 4.1 IMG for LC Customizing

Master Data Maintenance

Company settings

There can be certain special company settings with LC's. All these are maintained as company settings in the module. The maintenance is common for both Import and Export LC's.
Select from ToolsCustomizingLetter of Credit Master DataCompany settings

Figure 4.2 Company Settings

Code type

The various codes used in the module are grouped under different heads and each of these is called a code type.

Select from Tools CustomizingLetter of Credit Master DataCode settings Define Code Type
Figure 4.3 Code type

E.g.,

Code type

Description

PACK

Packing type

SHIP

Shipment mode

Code Master

All the codes used in the Imports LC module and their description are maintained in the code master.

Select from Tools Customizing Letter of creditMaster DataCode settings Code Master
Figure 4.4 Code master

E.g.: Code type

Code

Description

PACK

SOPN

Side open

SHIP

HAND

By hand delivery

LC Types
All the LC types used in the Imports LC module and their description are maintained in the LC type.

Select from ToolsCustomizingLetter of credit Master Data Code settings Define LC types
Figure 4.5 LC types

E.g.: LC type

Description of code

01

Irrevocable and confirmed

04

Revocable

Banks

All the advising and negotiating bank types used in the Imports LC module and their description are maintained in the Bank types.
Select from Tools Customizing Letter of credit Master Data Code Settings Define banks
Figure 4.6 Banks

E.g.: Bank key

Country

Name of the bank

BK1

IN

Union bank of India

BK2

UK

City Bank

Text Objects

There can be certain special conditions or annexure attached with LC's. All these are maintained as text objects in the module.
Select from ToolscustomizingLetter of Credit Master DataCode Settings Define text objects
Figure 4.7 Screen for defining text objects

E.g.: Type of LC

Object ID

Meaning

Text category

E or I (E for Exports

ZL1

0001 Shipping document

I for Imports)

Define Additional Fields

This activity is used for defining additional fields, which can be used when creating a LC in the system.

Select from Tools CustomizingLetter of credit Master DataCode Settings Define Additional Fields
Figure 4.8 Defining Additional fields

Message type
The message types can be customized to whether information, warning or error messages are required.

Select from ToolsCustomizingLetter of creditMaster DataCode SettingsDefine Message types

Figure 4.9 Message Customisation

Defining Mail List

After each activity in the module a SAP office mail will be triggered and will be sent to respective persons. The list of mail recipients can be customized. The maintenance is common for both Import and

Export LC's.

Select from Tools customizing Letter of credit Master DataCode SettingsDefine mail List

Figure 4.10 Mailing list

E.g.:

Type of LC

Activity code

Recipients name

Login name

11

Login name

LC Customisation (Amendment)

The clauses in LC can be customized and mapped to the corresponding fields in the LC Document.
Select from ToolsCustomizingLetter of Credit LC Customisation
The clauses are maintained here.
Figure 4.11.1 LC Amendment

Select the clause and go to details. A pop-up appears for mapping the field to the clause.

If the clause is mapped to only one field the following screen appears where the mapping can be done.
Figure 4.11.2 LC Amendment

If the clause is mapped to more than one field the following screen is displayed the mapping can be done.

Assignment

Figure 4.11.3 LC Amendment

Assign Screen to activity and set the screen

This assignment must be carried out for assigning different screen to different activity to be carried out. This assignment makes sure that only those screens will be visible to the user for the

particular activity.

Select from ToolsCustomizingLetter of CreditAssignments Assign Screen to activity and set the screen.
A) Screen to activity

Figure 4.12.1 Choose Activity

User can select the first entry for assigning screen to various activities, and the second entry for assigning fields to screen.

Figure 4.12.2 Assign Screen to Activity

User can select one activity by clicking details button.

Figure 4.12.3 Assign Screen to Activity

User can choose the different screens required for the particular activity. The Screens chosen here will be available for screen field level customization. The user has to click the 'Enter' button to save the

settings.

B) Set the screen field

The user must enter the activity code for which he intends to set the screen fields.

Figure 4.12.4 Select Activity Code

E.g. - Activity code 1

On Pressing Enter Button it navigates to the screen showing the list of screens that are assigned to the activity.
Figure 4.12.5 Select screen

Choose a Screen and press the details button to navigate to the field level customisation.
Figure 4.12.6 Field Customisation

The fields can be customized to display the field make it a required field, suppress the field or make it as optional, according to the user requirement. Press the 'Save' button to save the settings.
Output Control

Define Output Types

This activity is to define the Output Types used in the LC application Print.

Select from ToolsCustomizingLetter of CreditOutput Control Define Output Types

Figure 4.13 Output Types

Output (Print, Screen, EDI) Enabling

Select from ToolsCustomizingLetter of CreditOutput Control Define Output Types

Figure 4.14 Output Enabling

5. BOE, Bond, Document Set

Getting Started

To access the IMG for customizing Bill of Entry Module:

Via menu

Tools CustomizingBill of Entry

Via transaction code

/OBIZ/ZBND

The following screen with IMG appears after the expansion of all the Nodes.
Figure 5.1 IMG for Bill of Entry, Bond Custiomisation
Company settings

The various Company Level data can be maintained in the 'Company settings'.

The access path is:

Select from ToolsCustomizingBill of Entry Company settings

Figure 5.2 Screen for maintaining Company level data

E.g.: Company Code

0001

Ex Rate Type

Landing Charge

1001

Re-warehousing Period
12

Warehouse
C

Assignment

Procedure/ Tariff assignment to Material

The Procedure Name and the Tariff/Notification Number can be assigned to the Material in the menu, 'Procedure/ Tariff assignment to Material'.
The access path is:

Select from ToolscustomizingBill of Entry Assignment Procedure/Tariff assignment to Material

Figure 5.3 Screen for assigning Procedure & Tariff. No. to Material

E.g.: Material

Tariff / Notif. Number

Drill Bit

1000

Procedure Name
ABCD

Tr./ Nt. Fr. dt.

16.02.2001

Note: The calculations are carried out using Procedures; hence each material has a Procedure name. These procedures consists of different 'Step Number' where each 'Step Number' corresponds to a

particular duty code and each of these 'Step Number' (duty code) can have its own 'Step Number' for duty calculation.

Master data
Duty Calculation Procedure

The various Duty calculation procedures along with Descriptions can be maintained in the menu, 'Duty Calculation Procedure'.

The access path is:

Select from ToolsCustomizingBill of Entry Master DataDuty Calculation Procedure

Figure 5.4 Screen for Maintaining Procedure Name and Description

E.g.: Procedure
Name
AAAA

Procedure
Description
For Duties
Tariff /Notification Maintenance Master
The various Tariff/Notification/Benefit procedures can be maintained through this IMG activity.
The access path for this menu is:

Select from ToolsCustomizingBill of Entry Master DataTariff/Notification Maintenance Master

The following screen is obtained, where the Tariff/Notification/Benefit procedure, which has to be maintained, is

entered.

Figure 5.5 Tariff Notification Maintenance master

E.g.: -

Tariff/Notif

1000

Tariff/Notification

Number

The user uses the 'Enter' key to navigate to the next screen where the different duty rates for the tariff / notification is maintained. The duty codes

shown on this screen are taken from the code master table where entries are maintained against the code type 'DUTY'.
Figure 5.6 Maintain Tariff Notification

E.g.: Code

Specific Rate %

Adval Dty Rt INR

BCD

5.0000

5.0000

CVD

10.0000

5.0000

SAD

5.0000

5.0000

SCD

5.0000

5.0000

UoM

Note: Here for every Tariff/Notification Number the applicable duty codes (E.g.: BCD, CVD...) along with their rate types like specific rate in percentage, Advalorem rate in INR and UoM (Unit of Measure)

are maintained.

Advalorem Rates when entered without Unit of Measure is read as percentage of Assessable Value and when entered with Unit of Measure is read as Amount in Rupees per Unit of Measure.

Procedure Maintenance Master

The various Duty Procedures can be maintained in the menu, 'Procedure Maintenance Master'.
The access path is:

Select from ToolsCustomizingBill of EntryMaster DataProcedure Maintenance Master

An initial 'Maintain duty procedure' screen is first obtained, where the Duty procedure, which has to be maintained, is entered. Then the following screen corresponding to the Duty Procedure Name is

obtained.

Figure 5.7 Duty procedure

Step Number

Code

Tariff/Notif. Number

Specific/ adval

Rate type
| h2. Duty value selection (Relevance)
| h2. Icon
|

SCD

1000

AD

Select _Details

Note: Each 'Step Number' corresponds to a duty code of a particular tariff/notification/benefit (T/N/B) number with their rate types (i.e., whether Specific or Advalorem) and the relevance of the particular

duty code with respect to the total duty, i.e., whether it is Add to Total duty (AD)/Take Maximum (MX)/Take Minimum (MN).
Figure 5.8 Steps in duty procedure

'Step Number 1' is reserved for Assessable value and it is defaulted in the screen and it can't be edited. By choosing the menu, 'Choose details' the calculation details (i.e. 'step number') of that particular

'Step number' (duty code) and their Sequence is obtained as below.

Each 'Step Number' correspond to their duty value (for e.g. 'Step Number 1' stands for the Assessable value) and if required can be multiplied by the constant. If the constant is left empty the system

automatically takes it as 1.000, and finally the operator indicates whether to add or multiply the value with the Value of the next Step Number, if 'no', next step exists and then there is no need of operator.
Bond Types

The types of bonds maintained are defined in the bond master.

The access path is:

Select from ToolsCustomizing Bill of Entry Master Data Bond type

Figure 5.9 Screen for defining Bond types

E.g.: Bond

Subtype

Bond subtype and descriptions

LB

LB

License Bond

WB

BG

Bank guarantee

Document Master (Document Customisation)

The various Document categories, Attachment type and their description can be defined in the Document Master.
The Access path is:

Select from ToolsCustomizingBill of Entry Master DataDocument Customisation

Figure 5.10 Document Customisation

Code Types
Codes that are to be for identifying data are grouped under different heads and each of these is called a code type. To define a code type:
Select from ToolsCustomizingBill of Entry Master Data Define code types

Figure 5.11 Code Types

Codes
All the codes used in the module and their descriptions are maintained in the code master. To define a code:

Select from ToolsCustomizingBill of EntryMaster Data Define Codes

Figure 5.12 Codes

Insurance Rates

The user can enter the CIF and the duty rates. This information is used to calculate the insurance amount and premium details on the creation of Non Negotiable Documents (NNDO) in OptiTrade

Imports.

The access path is:

Select from ToolsCustomizingBill of EntryMaster Data Insurance Rates

Figure 5.13 Insurance Rates

Document Set Customisation

Before the user can create any document set, the document category must be defined. With this activity user can define a new document set type.
The Access Path is:

Select from ToolsCustomizingBill of EntryMaster DataDocument Set Customisation

Figure 5.14 Document set customisation
Payment Requisition Codes

The payment head and the description can be maintained here.

The Access Path is:

Select from ToolsCustomizingBill of EntryMaster DataDocument Set Customisation

Figure 5.15 Payment Requisition Codes

Duty Drawback

Duty Drawback All Industry Rate

The user can maintain the All Industry Rate (AIR) for different product groups using this activity.
The Access Path is:

Select from ToolsCustomizingBill of EntryDuty DrawbackDuty Drawback All Industry Rate

Figure 5.16 Duty Drawback - All Industry Rate

6. Pre-requisites
OptiTrade: Imports is an add-on tool with SAP R/3, which retrieves data from standard SAP modules. For completing the Import
cycle there are some pre-requisites from the SAP MM and FI modules. These two modules should be customized so that the
purchase order, Shipping notification and the financial document for payments can be retrieved.

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1 Comment
Guest
Hi,

Its a very good document.

But can you let us know, if it is Industry specific or we need to activate some BC sets etc. as we are unable to run the tcodes specified in the document. Please share this basic information to
help all of us.

Thanks in advance.
Regards
Swapvik
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