Compliance checks for documents linked to letters of credit

During the sales order, contract deliverable, and purchase order procedure, changes can be made to the documents involved. To verify if the changes made to the documents conflict with the requirements of the linked letters of credit (L/C), LN performs document compliance checks.

During the following steps in the sales order, contract deliverable, and purchase order procedure, LN performs these document compliance checks:

  • Approve or activate document
    When the sales or purchase document is approved, or the contract deliverable is activated, LN verifies if the status of the linked letter of credit is set to Definitive.
  • Release to Warehousing

    When the document is released to Warehousing, LN verifies if the status of the letter of credit is:

    • Accepted for export or domestic sales letters of credit.
    • Issued for import or domestic purchase letters of credit.
  • Confirm shipment

    When the shipment related to the sales order is confirmed, LN verifies if:

    • The shipped amount does not exceed the total amount of the letter of credit.
    • The latest shipment date of the letter of credit is not before the planned delivery date of the linked document.
  • Confirm receipt

    When the receipt related to the purchase order is confirmed, LN verifies if the:

    • Received amount does not exceed the total amount of the letter of credit.
    • The latest shipment date of the letter of credit is not before the planned receipt date of the linked document.

The check results are displayed in the Document Compliance Check Results (tcgtc1510m000) session and the Check Results tab in the satellite section of the applicable letter of credit session.

Also, the Document Compliance Status is displayed for shipments, shipment lines, and contract deliverables in these sessions:

  • Shipments (whinh4130m000)
  • Shipment Lines (whinh4131m000)
  • Contract Deliverables (tppdm7100m100)

Unsuccessful compliance checks result in blocking the purchase order lines, sales order lines for which the checks are performed. For contract deliverables, the outbound order lines are removed and the contract deliverable is set to status Free.

Blocked sales and purchase order lines are displayed in the Blocked Sales Order (Lines) (tdsls4520m000) and Purchase Order (Line) Blockings (tdpur4120m000) sessions.

Note

Blockings resulting from failed document compliance checks cannot be resolved in the Blocked Sales Order (Lines) (tdsls4520m000) and Purchase Order (Line) Blockings (tdpur4120m000) sessions.

Resolve compliance failures

If the compliance check results in a failure, you can:

After the compliance failure is corrected, the sales and purchase order lines are unblocked in the Blocked Sales Order (Lines) (tdsls4520m000) and Purchase Order (Line) Blockings (tdpur4120m000) sessions.

Example

If you add an order line to a sales order that is linked to a letter of credit (L/C), LN links the order line to the L/C. If this causes the maximum amount of the letter of credit to be exceeded:

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