How To Fix CRM_BILLING021 - Letter of credit required; transaction is not relevant for foreign trade

SAP Error Message - Details

• Message type: E = Error

• Message class: CRM_BILLING - Messages for Billing Set

• Message number: 021

• Message text: Letter of credit required; transaction is not relevant for foreign trade

What causes this issue?

A letter of credit is required but the transaction type is not relevant
for foreign trade (SAP Global Trade Services).

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

If a letter of credit is really required, contact your system
administrator. Otherwise deselect the indicator showing that a letter of
credit is required.

Procedure for System Administrators

Check whether the transaction type is customized correctly.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message CRM_BILLING021 - Letter of credit required; transaction is not relevant for foreign trade ?

  The SAP error message CRM_BILLING021 indicates that a letter of credit is required for a transaction that is not relevant for foreign trade. This error typically arises in the context of billing and sales processes within the SAP Customer Relationship Management (CRM) module, particularly when dealing with international transactions.
  Cause:
  
  Transaction Type: The transaction you are trying to process is classified in a way that requires a letter of credit, but the system has determined that it is not relevant for foreign trade.
  Configuration Settings: The configuration settings in the SAP system may not be aligned with the requirements for foreign trade transactions. This could include settings related to sales documents, billing documents, or customer master data.
  Master Data Issues: The customer or material master data may not be set up correctly to reflect the necessary foreign trade information.
  Document Flow: The document flow may not be correctly established, leading the system to misinterpret the transaction's relevance to foreign trade.
  
  Solution:
  
  Check Transaction Type: Review the transaction type you are using and ensure it is appropriate for the intended billing process. If it should be relevant for foreign trade, adjust the transaction type accordingly.
  Review Configuration: 
  
  Go to the configuration settings in SAP (SPRO) and check the settings related to foreign trade and billing.
  Ensure that the relevant sales document types and billing document types are configured correctly to handle foreign trade transactions.
  
  
  Update Master Data: 
  
  Check the customer master data to ensure that the foreign trade data is correctly maintained (e.g., export license, letter of credit requirements).
  Verify the material master data for any foreign trade-related settings.
  
  
  Document Flow Verification: Ensure that the document flow is correctly established and that all necessary documents are in place for the transaction.
  Consult with Foreign Trade Experts: If the issue persists, consult with your organization's foreign trade experts or SAP consultants who can provide insights into the specific requirements for your business processes.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide additional guidance on configuration settings.
  Documentation: Review SAP documentation related to foreign trade and billing processes to ensure compliance with legal and business requirements.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to identify the root cause of the error and implement the necessary changes to resolve it.