Compliance checks for documents linked to letters of credit

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

• Link document to letter of credit

  When the document is linked to a letter of credit, LN verifies if:

  • The aggregated order amount does not exceed the amount of the letter of credit.
  • The expiry date of the letter of credit (L/C) is after the order date of the linked sales order, sales order line, purchase order, or purchase order line.

• 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.

Resolve compliance failures

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

• Correct the letter of credit or the document.
• Override the failure in the Override Compliance Check Results Workbench (tcgtc1610m100) session.

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.