What is surety in SAP LO - Logistics - General?

SAP Term: surety

• Component: LO

• Component Name: Logistics - General

• Description: A guarantee, in India, that the excise department requires from some exporters when they apply for an excise bond. Whether or not a surety is required is at the discretion of the excise department. A surety is in effect a promise by a third party to pay any debts to the excise department incurred as a result of the bond: In the event of an exporter failing to pay any excise duty owed, the excise department collects the excise from the third party.

Smart SAP Assistant

• Key Concepts: 
  Surety is a term used in SAP Logistics to refer to a guarantee of payment or performance. It is a contractual agreement between two parties, where one party (the surety) agrees to be responsible for the payment or performance of the other party (the principal) in the event that the principal fails to fulfill their obligations. 
  
  How to use it: 
  In SAP Logistics, surety can be used to ensure that goods are delivered on time and that payments are made in full. The surety can be used as a form of insurance against any potential losses incurred by the principal due to non-performance or non-payment. 
  
  Tips & Tricks: 
  When setting up surety in SAP Logistics, it is important to ensure that all parties involved are aware of their obligations and responsibilities. It is also important to ensure that all relevant documents are signed and dated correctly. 
  
  Related Information: 
  For more information on surety in SAP Logistics, please refer to the SAP Help Portal. Additionally, there are many online resources available which provide further information on surety and its use in SAP Logistics.