Link and unlink letters of credit

If letter of credit (L/C) is the payment method to pay a document, you must link the letter of credit to the document.

Export and domestic sales letters of credit must be linked to the sales orders, sales order lines, or contract deliverables for which the letters of credit provide payment. Import and domestic purchase letters of credit must be linked to purchase orders or purchase order lines.

To link letters of credit to documents, you can select a letter of credit in the document session or select a document in the letter of credit session.

You can link a letter of credit to an order header or an order line. If you link a letter of credit to an order header, the order lines are also linked to the letter of credit.

If you link a letter of credit to an order line, the letter of credit is only applicable for the order line. For each order line, you can link a different letter of credit.

Criteria

To be linked to a document, a letter of credit must:

Not yet be approved.
Have the status set to Preliminary or Definitive.

To be linked to a letter of credit, a document must:

Have the Letter of Credit Required check box selected.
Not yet be approved.
Have a positive ordered amount that does not exceed the maximum amount of the letter of credit.
Have the same company as the letter of credit.
Order lines
The warehouse must be specified. This is the warehouse in which the goods covered by the letter of credit are issued or received.
Purchase document
A purchase document must:
- Have a planned receipt date not before the Latest Shipment Date or the Shipment Period To of the letter of credit.
- Have the same buy-from business partner as the one on the letter of credit.
Sales document and contract deliverable
A sales document or contract deliverable must:
- Have a planned delivery date not later than the Latest Shipment Date or the Shipment Period To of the letter of credit.
- Have the same sold-to business partner as the one of the letter of credit.

Link document in letter of credit session

On the appropriate menu of the applicable letter of credit session, select Link Document.
In the Link Document (tcgtc2245s000) session:
- Select the company of the document to be linked. This step is applicable in multicompany environments.
- Select the required document type.
- Click Continue.
- Select the required document.

Note: If no documents are displayed after clicking Continue, none of the documents of the selected document type meet the criteria listed earlier in this topic.

Link letter of credit in document session

In the header or line section of the document session, select the Letter of Credit Required check box.
On the appropriate menu of the applicable document session, select Link Letter of Credit.
Select the required letter of credit. If no letter of credit is displayed, no letter of credit that matches the criteria of the order or order line is present.

Note:

If you select the Letter of Credit Required check box on the order header, this check box is also selected for the order lines that meet the criteria. Order lines for which no warehouse is specified, or with a negative order amount, are not linked to the letter of credit.
If you add an order line to a sales order that is linked to a letter of credit, the order line is automatically linked to the letter of credit.

Unlink letters of credit

If required, you can unlink a letter of credit from a document. To do so, the letter of credit must be unapproved.

If a letter of credit is linked to the order header, you must unlink the letter of credit on the order header. Unlinking the letter of credit for individual order lines is not allowed.

If a letter of credit is linked to an order line, you must unlink the letter of credit for the order line.

Note: If you cancel a letter of credit, the letter of credit is unlinked from the document and the Letter of Credit Required check box is cleared for the document.