MENA EXIM Business Process Document

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Contents
Letter of Credit Request ............................................................................................................................ 3
Letter of credit ........................................................................................................................................ 10
Bank Guarantee Request ........................................................................................................................ 16
Bank guarantee ....................................................................................................................................... 22

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Letter of Credit Request

Introduction
Create a letter of credit request under this category for those goods and products that are to be
imported.

A bank issues an import letter of credit request on behalf of the importer under the following
circumstances:

 Importer is importing goods within one’s own country

 Importer buys goods from within the country with the intention to sell it to another country

Process
1. Create a purchase order using transaction ME21N in standard SAP R/3 application.
2. Create a letter of credit request in the SAP EXIM MENA application by choosing New under the
letter of credit section on the product launchpad.

3. Maintain the company code, vendor, and document type

4. Choose Continue.

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5. Search for the purchase orders by choosing the Search button.

6. Select one or more purchase orders that need to be added to letter of credit request
and choose the Add Purchase order to selected list button.

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7. Choose Next.

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8. Maintain the required values for processing the letter of credit request.

9. If required, maintain the bank charges and the documents list.

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10. Letter of credit request form

11. Review the letter of credit request.

12. Once the review is done, choose the Submit button to generate letter of credit request.

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13. Now search for letter of credit request from above screen or from EXIM launch pad.

14. Search for the created letter of credit request number and click on the number link as
indicates below.

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15. Choose Edit and change the status of letter of credit request to Sent to bank and save
the letter of credit.

16. Once the bank approves the application, again open the letter of credit request and
change the status of application to Approved by Bank and save the document.

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Letter of credit

Introduction

To create the letter of credit, you require a letter of credit request which has been approved by bank.

Process/Procedure

1. Create a letter of credit in SAP EXIM MENA application by choosing New under Letter of Credit
on the product Launchpad.

2. Maintain the required details and the values which are coming based on the respective request
number.
Note that the user can change these values.

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3. Add bank charges, documents sets if required

4. Review the values and submit/save the application for letter of credit.

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5. Note the letter of credit number

6. Choose Display/Edit in the Letter of Credit section from MENA workbench.

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7. Choose Edit and change the status to LC Creation Posted.

8. Once the document is saved, the system will generate the accounting document number which
can be displayed using the FB03 transaction.

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9. Again open the letter of credit from search screen to close the letter of credit. Once you close
the letter of credit, you can make no further changes.

10. When you save the letter of credit, the system will generate the accounting document which
you can view using the FB03 transaction.

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Bank Guarantee Request

Introduction
A bank guarantee is a surety or a guarantee issued by the bank on behalf of its customer for the benefit
of a domestic or foreign beneficiary, with which the bank as the guarantor undertakes financial
responsibility.

Process
1. Create a sales order using transaction VA01 in standard SAP R/3 application.
2. Create a bank guarantee request in SAP EXIM MENA application by choosing New under Bank
Guarantee Request section on the product launchpad.

3. Maintain the company code, customer and then choose Continue.

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4. Search for sales orders by choosing the Search button.

5. Select one or more sales orders that need to be added to bank guarantee request and
choose the Add sales order to selected list button.

6. Choose Next.
7. Maintain the required values for processing the letter of credit request.

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8. Review the details before saving the bank guarantee request and once reviewed choose
Save.

9. Once the review is done, choose the Submit button to generate the bank guarantee
request.

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10. Now search for bank guarantee request from above screen or from EXIM launch pad.

11. Search for the created bank guarantee request number and click on the number link as
indicated below.

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12. Choose Edit and change the status of bank guarantee request to Sent to Bank and save the
letter of credit.

13. Once the bank approves the application, again open the bank guarantee request and
change the status of application to Approved by Bank and save the document.

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Bank guarantee
Introduction

A Bank Guarantee (BG) is a document issued by the bank assuring payment to a seller of
goods/services provided certain documents have been presented to the Bank.

BG serves as a guarantee to the seller that he will be paid regardless of whether the buyer
ultimately fails to pay.

Process
1. Create a bank guarantee in SAP EXIM MENA application by choosing New under Bank Guarantee
on the product launchpad.

2. Enter the company code and bank guarantee request number which has status Approved by
Bank.

3. Maintain the required details and the values which are coming based on the respective request
number.
Note that the user can change these values

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4. Review the values and save the application for bank guarantee.

5. Once saved, the application will generate the bank guarantee number.

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6. Choose Display/Edit under the Bank Guarantee section from MENA workbench and search for
the created bank guarantee.

7. Choose Edit and change the status to BG Creation Posted.

8. When you save the document, the system will generate the accounting document number
which can be displayed using the FB03 transaction.

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9. Open the bank guarantee once again from the search screen and close it. You cannot make any
further changes to this bank guarantee.

10. When you save the bank guarantee, the system will generate an accounting document which
you can view using the FB03 transaction.

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