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Process description in a nutshell

  • Order creation: customizing and customer master data determine if an order item needs to be secured by a financial document (especially: a letter of credit)
  • For this: matchable letter of credit must have been created in the system
  • financial document number is assigned manually to the order resp. the order item
  • System checks if assigned letter of credit is appropriate
  • In case check is negative credit status is set to NOT OKAY: order is blocked for delivery

Regard: SD-FT-LOC is an extension/part of the credit management functionality (component SD-BF-CM).   


SPRO path: Sales and Distribution → ForeignTrade/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 (subscreen "Banks").

SAP Help:  Documentary Payments (SD-FT-LOC)

SAP Help: About Documentary Payments  (incl. meaning of different bank functions)


(C) Define Texts for Financial Documents (VOTX)

These texts are inserted in the definition of the LOC master record (subscreen "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. Doubleclick on value '01' for details.  


(G) Define Bank Indicators for Financial Documents (VX56 - T607K)

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



(H) Assign Documents to Financial Document Indicator (VX58 - T607E)

Combination of FD indicator (F) + Documents (D) defines: required number of originals and copies of an document


(I) Specify Control of Banks in Financial Document (VX54 - T607S)

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 - T607I)

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 - T691K)

A "Forms of Payment Guarantee" determines a permitted combination of: "Payment Guarantee Category" / "Financial Document Category" / "Financial Document Type"

(info) 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 - T691M)

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

Permitted Payment Guarantee Forms (K) are assigned.


(L2) Define Customer Determination Schema (OVFG - T691P)

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 - T691R)

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


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

Document Determination Schema (L3) is assigned to the relevant sales order types.


(L5) Define Payment Guarantee Schema Determination (OVFJ - T691U)

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: Goto → 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 

Customizing In a nutshell

Customizing defines:

  • if a sales order item needs to be covered with a financial document:

Document Determination Schema  (L3) + Customer Determination Schema (L2) = Payment Guarantee Procedure (L1)

Item Category activated for credit management?

  • which kind of fincancial document may be used for coverage

Payment Guarantee Procedure (L1) → Payment Guarantee Forms (K) → permitted kind of Financial Documents (defined by Financial Document Type (A) and Financial Document Category)

  • the attributes of every kind of a financial document when it is created:

Financial Document Type (A) + Financial Document Category = Financial Document Indicator (F) and Bank Indicator (G)

Financial Document Indicator (F) defines the attributes of a financial document (except bank data), created with VX01N

 Bank Indicator (G) defines the attributes of the bank dfata used in a financial document


Letter of Credit: master data

SAP Help:   About Documentary Payments (incl. meaning of different bank functions)


How to create a Letter of Credit

3 options:

1.SAP Menu: Logistics → Sales and Distribution → Foreign Trade/Customs → Payment Guarantee → Documentary Payments → Financial Document → Create

2.Transaction VX11N

3.directly whilst sales order processing: Goto → header or item → billing → extras → financial document → create

(internally: call of VX11N. The financial document category and financial document type defined by the first form of payment guarantee (K) of the specified payment guarantee procedure are used as a default proposal)

To create a letter of credit the following fields have to specified: document category document type code

1. and 2. determine the "look" of the financial document according customing settings. 

(warning)The status of the financial document must be set to status ‘D’ so it can be used in sales orders.


The master data

(info) Customizing setting (F) determines which fields are displayed and which fields are mandatory.

Partner data

  • Customer
  • Ship-to Party

General data

 block "Opening bank / document number"

  • Bank Country / Bank Key / External financial doc. no.

These are the data of the "Opening bank". They are also available on subscreen "Banks"

block "Values"

  • Financial document value / Financial document currency

This is the value covered by the financial document

  • Allowed overdraft percentage
  • Terms of Payment

Dates/Delivery Dates

block "Deadlines"

  • Request date
  • Date of receipt
  • Last shipping date
  • validity end date

opening date

  • Latest date of ocean bill of lading (German: "Spätestes Datum des Bordkonnossments")
  • Presentation date (German: "Einreichungsdatum")
  • Number of days for submitting the documents to the bank

block "Delivery Data"

  • Incoterms (part 1) / Incoterms (part 2)
  • Complete delivery
  • Reload indicator  (German: "Umladekennzeichen") 


  • Table of Export Documents

Corresponds with Customizing Setting (D). Furthermore, customizing (F) determines if more documents may be inserted.


List of available banks corresponds with Customizing Setting (B) and (F).

Opening bank data can be maintained also on subscreen "General data"

To maintain data select kind of bank on the left side, then click on button "Assign Banks". Now it the bank data can be maintained.

block "Bank Data"

  • bank function / description / bank country / bank key / External financial doc. no.

block "Bank Detail"

  • bank charges % / bank charges / Currency


Available texts correspond with Customizing Setting (C) and (F).


block "Status"

Financial document status A / B / C / D / E can be selected.

The values displayed on the popup screen when status 'E' is selected correspond with Customizing Setting (E)  


  • Administrative Data / Company Code Data

Financial Document in SD documents

Sales Order

Important field: Credit Status (Goto → Header → Status → block "Processing Status")


  • Assigning has to be done manually in the order on header or item level (different to the assignment of a export license in SD-FT-CON)
  • Assigning can be done on header level (Goto → Header → Billing → block "Risk Management" → field "Financial Document Number") or on item level (Goto → Item → Billing → block "Risk Management" → field "Financial Document Number")
  • If the financial document is assigned on header level it is valid for all items relevant for credit management
  • Financial Document Number of a sales document is stored in database table VBKD.


  • If no financial document number is assigned credit status is set to 'not approved' (= Check is NOT OK)
  • Rejected items are not relevant (note 833417)
  • System checks if the assigned financial document fulfills the necessary requirements: (values, dates, payer data etc.)
  • If the check is OK:

Credtit Status is set to 'approved'

Table S131 is updated

  • If the check is NOT OK:

Credtit Status is set to 'not approved' (Credit block)

Credit block sets confirmed quantities to zero (table VBEP)

Order is blocked for delivery

Table S131 is not updated


(warning) Remarks:

  • Either the whole value of a sales order can be covered by the financial document or nothing! (Regard: "Credit Status" is a header field)
  • Return Process is not possible! (note 1650147)  


Goto → Header → Billing → Extras → Financial Document → Log resp. Goto → Item → Billing → Extras → Financial Document → Log

Protocol is created dynamically, i.e only when LOC check is processed. Because LOC check is processed during saving it is not possible to display a protocol. 

LOC Check is processed when the order is saved. In case the check is negative an information window (popup) is displayed. For more information click on the (question) icon on the popup screen


Delivery Note

LOC check is processed during creation.

The Financial Document number is a split criteria for delivery creation.

The Financial Document number is stored in the delivery header data (table LIKP, field LCNUM) and it is not changeable. 


Invoice Document

No LOC check is processed. The Financial Document number is stored in the invoice header data (table VBRK, field LCNUM).



(Nearly) all important transactions are accessible via the LOC Cockpit (transaction ENLO) including the following transactions (et. al.): 

  • VX11N - Create a financial document
  • VXA1 - Find sales documents with financial document assigned
  • VXA2 - Find available financial documents
  • VXA3 - Find documents blocked by LOC check

Not accessible via Cockpit:

  • VKM3 - Release of a blocked sales order
  • VKM5 - Release of a blocked delivery note

Database Tables & Fields

AKKP - LOC Header Data

AKKB - LOC Bank Data

AKKD - LOC Document Data

Data maintained when financial document master data are created/changed via VX11N / VX12N


Contains financial document number of a sales document


Contains financial document number of a delivery note


 Contains financial document number of a billing document


Status Credit Management:

= B - blocked


Display of "Form of Payment Guarantee" to be used → Customizing (K)


Contains consumed values of a financial document

When LOC check has status OK this table is updated


The LOC check program itself doesn't provide any user-exit, i.e. check cannot be manipulated by user-exit coding.

License master data can be expanded by user-exit to maintain additional fields on a subscreen:

EXIT_SAPMV86E_001Subscreen Data Transfer
EXIT_SAPMV86E_002Subscreen Data Transfer

 SMOD enhancement: RVEXAKK1 

Important programs

Function modules:

RV_LOC_CHECK_ORDER_LINE_ITEM - LOC check called at sales order

RV_LOC_CHECK_DELIV_LINE_ITEM - LOC check called at delivery note (internal call of RV_LOC_CHECK_ORDER_LINE_ITEM)


SAPLV86E - maintain LOC master data


ZVUPDATE_S131 - correction report for table S131 (no official use, provided in note 597283)

CHECK_CM - check report for credit management: see check results


some prerequisites necessary in the customizing of the Credit Management area (SD-BF-CM) -> see note 18613


Check financial document


  • Changing (Return) Parameter = c_loc_credit_status:

A = Check: OK

B = Check: NOT OK

  • Internal Table I_T_S131

Contains values from database table S131

  • Internal Table I_T_S132

 Contains values to be updated on table S131 


Determine S132 values

form offene_werte_eint in LMCS5F10

form offene_werte_lips in LMCS5F10

form offene_werte_erm in LMCS1F10

calling form cmpre_calculate in LVKMPF10

report RMCSS131 - update S131


Update Debugging

Regard: Switch on in dialogue! (To be sure: set breal and watch points again even if set before)


→ processing of S structures (S131 et al.)

Protocol of final update can be displayed with tansaktion MC30

→ before: set user parameter MCL = X (transaction SU3)


Logic of S131 update

when a FD is assigned and check is okay

value = confirmed quantity * credit price ( trx V/08 calculation procedures: -> control: column ‘subtotal’ marked with A’ )

TA: order creation (delivery-related billing)(plus)-- 
TA: order creation (order-related billing)-(plus)  
LF: delivery creation (delivery-related billing)(minus)(plus)  
LF: delivery creation (order-related billing)--- 
F2: invoice creation-(minus)(plus) 
FI: posting / Clearing--- 
S1: invoice cancelling-(plus)(minus) 
G2: credit memo request-(minus)- 
G2: credit memo (related to credit memo request)-(plus)(minus) 
G2: credit memo (related to F2 invoice)-(plus)(minus)not permitted! OLIKW is never decreased!


Value written on database is multiplied with 1,000,000.00 to avoid rounding problems

(info) Return Process is not possible! (note 1650147 )

(info) For Credit/Debit Memos the use of Credit/Debit Memo Requests is mandatory! (note 1650147)

(info) The total of OEIKW + OLIKW + OFAKW must be GREATER EQUAL zero. Otherwise: serious problem!


Issues & Analysis

First question: Where is the problem located?

  1. LOC master data: VX11N / VX12N / VX13N
  2. LOC check: function module RV_LOC_CHECK_ORDER_LINE_ITEM
  3. Update of consumed LOC values: table S131
  4. Monitoring report: see cockpit ENLO → Monitoring
  5. Understanding issue → Consulting

Find solution:

ad 1.

  • error message EI 558 "Financial document values are negative → note 1650147
  • open value is wrong → see ad 3. The open value is calculated from the S131 values.

ad 2.

ad 3.

  • run report ZVUPDATE_S131 in test mode (note 597283 ) to check S131 values for a financial document:

Values are OK: no issue! Program works correctly.

Values are not OK: check user-exits, e.g. xxx orMV50AFZ1 (delivery note):

Frequent bug: field UPDKZ of an internal X table (e.g. xvbap, xlips) is changed, e.g. from '_' to 'U', even there isn't a corresponding entry in a Y table. This way, the new value (xtable) is written to S131 without decreasing the former value (ytable).

ad 4.

ad 5.

note 718260


allowed overdraft %Überziehungsprozentsatz
bank indicatorBankindikator
customer (determination) schemaKundenschema
document (determination) schemaBelegschema 
documentary paymentsDokumentengeschäft 
financial documentFinanzdokument
financial document indicatorFinanzdokumentindikator
financial document type Finanzdokumentart
financial document valueFinanzdokumentwert
forms of payment guaranteeAbsicherungsform
letter of credit (L/C)Akkreditiv
payment guarantee categoryAbsicherungstyp
payment guarantee procedureAbsicherungsschema




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