Process Of Letter of Credit for Imports IN SAP FICO

1. The Clearing agent ask for amount, the person who receive the product will give Letter of Authority to Clearing Agent. The clearing agent move to bank and take check.

For this purpose, we just issue LA.

2. Prepare Purchase for the Vendor from whom we are going to receive the product. There may be 2 or more Vendors.

1. Product cost to be transferred to Vendor A
2. Freight or Other Charges to Vendor B
3. Customs Duty and Others to Vendor C

Tcode : Me21n

3. First We have to pay Customs Duty to Commissioner of Customs after LA issued.

Entry : Customs Clearing a/c Dr
Cess on Custom a/c Dr
CVD Clearing a/c Dr
Cess on CVD a/c Dr
Special CVD a/c Dr

Vendor C a/c Cr.

T-code :MIRO or YMIROOTH

4. Cenvat credit for the product will be taken by person who handling Excise in that company

Entry : Cenvat Clearing a/c Cr.
RG23A Part II a/c Dr.

5. Clearing of Cenvat Credit

Entry : Cenvat Clearing a/c Dr.
CVD clearing a/c Cr.
Cess on CVD a/c Cr.
Special CVD a/c Cr.

6. After Bank payment they will transfter to us

Entry : Vendor a/c - Dr.
Bank a/c - Cr.