2015

USER MANUAL
Processing of Letter of Credit in SAP

SAP-MAS
Byco Petroleum Pakistan Limited.
6/15/2015
Table of Contents
1 Processing of Letter of Credit in SAP SD .............................................................................. 3

1.1 Purpose: ......................................................................................................................... 3

1.2 Advantage: ..................................................................................................................... 3

1.3 Pre-Requisites: ............................................................................................................... 4

1.4 Trigger: ........................................................................................................................... 4

1.5 Process Flow: ................................................................................................................. 5

1.6 Training User Manual ..................................................................................................... 6

1.6.1 Creation of LC Document in SAP: ........................................................................... 6

1.6.2 Making the LC Document Available to be used for Sales ..................................... 12

1.6.3 Enhancement in the LC ......................................................................................... 14

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1 Processing of Letter of Credit in SAP SD

1.1 Purpose:

Financial Document of LC should be created in SAP.(No financial Impact after creation)

Document of LC should be integrated with Separate Sales Document type.

Through this integration Business Should be able to trace the Sales Orders which will be
created against that LC Document.

Disengagement from Manual Work for LC.

1.2 Advantage:

Reporting of the business process will be streamlined in a way that anybody can have
the idea how many Sales orders based on a LC are being created in a specific period of
time.

Better controls with the help of LC Financial document based on a LC Amount.

- Shipments will not be allowed in case the Sales Order value exceeds the LC Value.
- Shipments will not be allowed in case LC Document VALIDITY DATE Expires.
- Shipments will not be allowed in case PGI Date falls above Latest Date of Shipment.

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1.3 Pre-Requisites:

Assignment of Payment Guarantee Procedure in the Billing Tab of Customer Master to

put the Customer on LC.

Creation of LC Financial Document.

Creation of Sales Order with the document type ZLC in ORB1 / YLCF in PMB.

1.4 Trigger:

Under Incompletion Log at the time of saving the Sales Order, it will ask the user to
assign the LC Document under Billing Tab of Sales Header Data.

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1.5 Process Flow:

SAP LC Based Sales Order Processing (Order to Cash) ORC1

Delivery Delivery
Challan
Shipment & Oil

Token
Accounts

Outbound Outbound Post Goods Proof of

delivery # - at Delivery # at Issued to Delivery(POD).
Weight Bridge GANTRY Customer after After Customer
Weighbridge Weighbridge Acknowledgment
Refinery Operations Weight Bridge
Material
Document

No
Customer Services

If Sales Order Sales Order

Sales Order
Sales Order Amount Exceeds YES
Blocked
Release by
LC Amount Authorized Person

Assignment
of LC # in the
Sales Order
Finance

Recording of LC
Start Invoice End
in the SAP

Accounting
Document

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1.6 Training User Manual

1.6.1 Creation of LC Document in SAP:

T-CODE: VX11N / VX12N / VX13N

Enter:

Financial Document Category

Financial Document Type

Company Code

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Enter:

Customer #

Ship to Party #

Bank Country, Bank Key & External LC #

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Enter in Delivery Dates TAB.

Opening Date,

Latest Shipping Date

Validity End Date

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Under Document Tab

Enter:

Original Document & Copies

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Press Save Button & Verify the Customer Address

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SAVE the document Again.

Document will set to status A (Document has been created)

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1.6.2 Making the LC Document Available to be used for Sales

T-CODE: VX12N

After creating the LC Document in SAP, user should set a status D which means that Now LC Document
is available to be used for SALES Purposes.

Now LC Document is ready to be assigned in Sales Order.

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After making the LC Document available for Sales, the LC Amount field Grey out (not changeable).

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1.6.3 Enhancement in the LC

T-CODE: VX12N

Goto STATUS Tab and Press Status E & Select Amendment

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After putting up the status E.

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Goto General TAB & Change the LC Amount. The field is open & changeable.

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Goto Status Tab Press the Status D

Save the document.

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