Customizing

SPRO path: Sales and Distribution Foreign Trade/Customs Documentary Payments

Basic Settings:

(A) Define Financial Document Type (VX50 - T607A)

This definition is used for the creation of a financial document. Generally, only "Letter of
Credit" (value '01') is used.

(B) Define Bank Functions (VX51 - T607B)

These functions are used in the definition of the LOC master record (sub screen "Banks").

(C) Define Texts for Financial Documents (VOTX)

These texts are inserted in the definition of the LOC master record (sub screen "Texts").
(D) Define Documents to be presented (VX57 - T607D)
These documents are used in the definition of the LOC master record

(E) Define Reasons for Change (VX49 - T607G)

These entries correspond with selection of status 'E' in the financial document.

(F) Define Indicators for Financial Documents (VX52 - T607F)

The Financial Document Indicator defines the attributes of the LOC master record. Double
click on value '01' for details.
(G) Define Bank Indicators for Financial Documents (VX56)

The bank indicator defines the attributes of the bank data used in the LOC master record.

Relationships
(H) Assign Documents to Financial Document Indicator (VX58)
Combination of FD indicator (F) + Documents (D) defines: required number of originals and
copies of a document

(I) Specify Control of Banks in Financial Document (VX54)

Combination of FD indicator (F) + Bank Function (B) defines: which bank function is used as
"Opening bank"? Which bank is a "one time bank" (no master record necessary)?

(J) Specify Financial Document Control (VX53)

Combination of Financial Document Type (A) + Financial Document Category defines: which
FD indicator (F) and bank indicator (G) is used for this combination.
Regard: Combination of FD type and FD Category needs to be specified when a financial
document is created (transaction VX11N).
The Financial Document Category is defined by the system: see values for domain AKKTP.

Risk Management for Financial Documents

(K) Define Forms of Payment Guarantee (OVFD)

A "Forms of Payment Guarantee" determines a permitted combination of: "Payment

Guarantee Category" / "Financial Document Category" / "Financial Document Type"

Only "Payment Guarantee Category" = '0' ("Financial Document") is relevant for LOC
handling.
(L) Define and Assign Payment Guarantee Schemas

(L1) Define Payment Guarantee Schema (i.e. Procedure) (OVFE)

Here Payment Guarantee Procedure '000001' (Letters of credit) is defined.

Permitted Payment Guarantee Forms (K) are assigned.

(L2) Define Customer Determination Schema (OVFG)

Here Customer Determination Schema '0001' (Letters of credit) is defined.

It has to be assigned in the customer master data of the payer:

Transaction XD02 sales area billing document field "payment guarantee

procedure"
(L3) Define Document Determination Schema (OVFH)

Here Document Determination Schema '01' (Standard) is defined.

(L4) Assign Document Schema to Order Types (OVFI)

Document Determination Schema (L3) is assigned to the relevant sales order types.
(L5) Define Payment Guarantee Schema Determination (OVFJ)

Combination of Customer Determination Schema (L2) + Document Determination

Schema (L3) determines payment guarantee procedure (L1)

In other words: if a sales order is created customer (sold-to party) and sales order type
determine the relevant payment guarantee procedure (transaction VA03: Go to Header
Billing block "Risk Management" field "payment guarantee procedure").

Activate Documentary Payments per Item Category (OVA7)

Every order item category relevant for credit management ((including LOC) has to be
flagged