Invoice Amount Mismatch Under a Letter of Credit: How to Check It
How to check the invoice amount against the Letter of Credit amount, tolerance and partial shipment rules.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
An invoice under a Letter of Credit must not exceed the amount the credit permits. A bank may accept an over-drawn invoice only if it does not honour more than the credit allows (UCP 600 Art. 18(b)). Tolerance in field 39A, or the words "about" or "approximately" (10% under Art. 30(a)), set the range; the currency must match the credit.
| Credit amount | Field 32B |
|---|---|
| Stated tolerance | Field 39A (e.g. 05/05 = ±5%) |
| "About" / "approximately" | ±10% (Art. 30(a)) |
| No stated tolerance, goods not in packing units or items | Quantity may vary ±5%, amount not exceeded (Art. 30(b)) |
How to check it
- Confirm currency matches 32B.
- Calculate the maximum: amount plus 39A tolerance.
- Check unit price × quantity equals the invoice total.
- Subtract amounts already drawn under partial shipments.
- Check deductions or discounts required by 47A.
Common mistakes
- Freight or insurance added to a FOB credit.
- Rounding that pushes the total over the limit.
- Using a tolerance from the contract rather than the credit.
Worked example (fictional)
A credit for USD 125,000.00 with tolerance 05/05 allows invoices up to USD 131,250.00. An invoice for USD 132,000.00 exceeds the credit; the bank need not accept it.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- Swift — MT700 Issue of a Documentary Credit (category 7 standards)
General guidance, not legal advice. Your bank examines documents independently.
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