Letter of Credit Management (49D)

Letter of Credit Management (49D)

This scope item supports common functionalities of letters of credit, including deal capture, rollover, acceptance and presentation, payment, and collections. In addition, it also provides the functions for cash collateral and fee calculation.

Both normal and standby letters of credit are covered, and they are defined as different product types.

Presently, we only support letters of credit without integration to Sales functionality.

Key Process Steps Covered

  • Create financial transactions
  • Set settlement status
  • Execute payments for fees and cash collateral for letter of credit issuance
  • Roll over transactions
  • Perform acceptance
  • Perform period-end closing
  • Perform payment for letter of credit
  • Monitor and report on positions and financial transactions

Benefits

  • Review the status for letter of credit instruments easily
  • Support the management of letters of credit, including creation of transactions, payments of cash collateral and bank fees, rollover, and termination of letter of credit
  • Make better operational and strategic decisions using the comprehensive reporting and analysis tools
  • Improve internal operational compliance

Where is Letter of Credit Management(49D) being used?

This Scope item is used in the following way:

  • As a support function of Treasury Management within Finance Scope Item Group

Process flow of Letter of Credit Management (49D)

Find below the process flow of the scope item Letter of Credit Management as it is defined for release s4h-2021.


Download Process Flow of Best Practice scenario Letter of Credit Management (49D) - S/4HANA OP
Ref: Finance of SAP S4H-2021
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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