How To Fix CRM_BILLING022 - Letter of credit is required but item is not relevant for foreign trade

SAP Error Message - Details

• Message type: E = Error

• Message class: CRM_BILLING - Messages for Billing Set

• Message number: 022

• Message text: Letter of credit is required but item is not relevant for foreign trade

What causes this issue?

A letter of credit is required but the item 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?

Deselect the indicator showing that a letter of credit is required, or
use an item with a different item category.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message CRM_BILLING022 - Letter of credit is required but item is not relevant for foreign trade ?

  The SAP error message CRM_BILLING022 indicates that a letter of credit is required for a transaction, but the specific item in question is not marked as relevant for foreign trade. This typically occurs in scenarios where the system expects certain items to be associated with foreign trade regulations, such as when dealing with international sales or exports.
  Cause:
  
  Item Configuration: The item in the sales order or billing document is not configured to be relevant for foreign trade. This could be due to missing settings in the material master or sales document type.
  Sales Document Type: The sales document type may not be set up to handle foreign trade transactions properly.
  Missing Foreign Trade Data: The necessary foreign trade data (like export license, customs information, etc.) may not be maintained for the item.
  Business Rules: The business rules defined in the system may require a letter of credit for certain transactions, but the item does not meet the criteria.
  
  Solution:
  
  
  Check Item Configuration:
  
  Go to the material master (transaction code MM03) and check the foreign trade data for the item. Ensure that the item is marked as relevant for foreign trade.
  If necessary, update the material master to include the relevant foreign trade information.
  
  
  
  Review Sales Document Type:
  
  Check the configuration of the sales document type (transaction code VOV8) to ensure it is set up to handle foreign trade transactions.
  Ensure that the document type allows for items that require a letter of credit.
  
  
  
  Maintain Foreign Trade Data:
  
  Ensure that all necessary foreign trade data is maintained for the item in question. This includes export licenses, customs information, and any other relevant data.
  
  
  
  Consult with Business Rules:
  
  Review the business rules that govern the requirement for a letter of credit. If the item should not require a letter of credit, you may need to adjust the rules or the item’s configuration.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error message no longer appears.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  MM03: Display Material Master
  VOV8: Sales Document Types
  VA01: Create Sales Order
  VA02: Change Sales Order
  
  
  Documentation: Refer to SAP Help documentation for detailed information on foreign trade settings and configurations.
  User Roles: Ensure that the user has the necessary authorizations to make changes to the material master and sales document types.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in SAP CRM and foreign trade processes.