![]() ![]() In next step ,we will assign Posting Specs to update type and Account Determination to those who are relevant to posting.Įnter Relevant General Ledger account to posting specs. Only click on update type which are relevant to posting. SPRO – financial supply chain management – Treasury and Risk management – General Settings – Accounting – Link to Other Accounting component – Indicate update type as relevant to posting It depends on business requirement it differ to every case scenario. ![]() Now we need to specify which update type is virtual and which will post accounting entry. SPRO- Financial Supply chain management- Treasury and risk management – Transaction management – Define condition for payment and presentation periodĮnter both condition by clicking on new entries. Presentation condition is based on shipping date and Payment condition is based on own enter date by user. There are two condition Presentation period and payment. SPRO- Financial Supply chain management- Treasury and risk management – Transaction management – product type – Assign General Valuation You can create valuation class as per client requirement as per product type. SPRO – Financial Supply chain management- Treasury and risk management – Transaction management – product type – Update type – Assign flow type to update typeĪssign Flow type inflow (+) and outflow (-) in flow type. Now, we assign all flow type previously created to respective update type. PATH SPRO – Financial Supply chain management – Treasury and risk management – Transaction management – product type – Flow Types – Define Flow types – Define update type and Assign UsageĬreate update type for every flow type previously created. We need to create as many update type as flow type created with +/- sign SPRO- Financial Supply chain management- Treasury and risk management – Transaction management – product type – Flow Types – Assign flow type to transaction type -Trade Finance Transaction now assign the created flow type to product type and transaction type. In previous steps we created Product type and transaction type. SPRO- Financial Supply chain management- Treasury and risk management – Transaction management – product type – Flow Types – Define Flow types – Trade Finance Transactionĭefining below Flow types for transaction in Trade Finance area: Flow type For the purpose of analysis, flow types are integrated with FI and cash management.Īlong with the Product type, flow types must be assigned to specific transaction types. Payment flows like principal increase, final repayment, and nominal interest are all defined by flow types. Assign number range to each transaction type. SPRO- Financial Supply chain management- Treasury and risk management – Transaction management – product type – Transaction typeįirst step create number range for each transaction typeĪfter creating number range, define transaction type in each product type.Įnter Product type and transaction type. Enter long and short text.ĭefine type of transaction as issue or receive in product type as per client requirement. to create product type.Įnter Product category 850 for letter of credit and 860 for bank guarantee. SPRO- Financial Supply chain management- Treasury and risk management – Transaction management – product type – Define product typeĪfter clicking on define product type click on new entries. The configuration is same for both product Bank guarantee and Letter of creditįirst step is by Defining product type by giving entering name and unique product type to recognize which it belongs to. Here we will see configuration process of Letter of Credit. There are two product type given by SAP for trade finance : By providing a framework under which a bank makes (or guarantees) the payment to an exporter on behalf of an importer once the delivery of goods has been confirmed through the presentation of the appropriate documents, L/Cs reduce payment. Instruments for trade finance typically involve capital but typically have short maturities.Ī letter of credit (L/C) is one of the most typical and standardized forms of trade finance that is facilitated by banks. This definition generally excludes working capital loans that are not specifically related to trading. ![]() Most of the time, banking products that are specifically connected to the underlying international trade transaction (export or import) are referred to as “trade finance”. Through a variety of products that assist clients in managing international payments and the risks associated with them, as well as by providing the necessary working capital, global and local banks support international trade. ![]()
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