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Credit Management

Former Member
0 Kudos

Hi Experts,

When do we assign a simple credit check to sales document ie,

A - Run a simple credit limit check and a warning message,

B - an error message, C - a delivery block then what values of customers credit is considered while creating sales order for the particular customer ?

Thanks

Rakesh

Edited by: Rakesh Kumar on Nov 6, 2008 5:43 AM

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

hi,

s u have maintain in FD32,

the individual limit.

Answers (8)

Answers (8)

Former Member
0 Kudos

Hi RAKESH,

IN SIMPLE CREDIT CHECK THE VALUE CONSIDERS AT SALES ORDER DOCUMENT VALUE ONLY

SAY EXAMPLE, IF THE CUSTOMER CREDIT LIMIT IS RS.100000, ALREADY HE CONSUMED RS.90,000, THEN WHILE YOU TRY TO CREATE ANOTHER ORDER FOR RS.11000, THEN THE SYSTEM WILL GIVE THE POP MESSAGE, DEPENDS ON UR SETTINGS LIKE ERROR MESSAGE OR WARNING MESSAGE.

SO BLOCK WILL ACT AT SALES ORDER LEVEL

REGARDS,

RAM

Former Member
0 Kudos

Hi Ram & prasad,

Thanks for your inputs.

I want to know that rs. 100000, where do we maintain that

credit limit ?

Do we maintain in FD32 ie in Central data.

thanks

rakesh

Former Member
0 Kudos

Maintain with FD32. Check the master later with F.35 also.

Regards

Arun

Former Member
0 Kudos

Hi Rajesh

1. When you want to treat all the customers alike, then you will use simple credit check. In VOV8 for your sales order type assign 'check credit limit' in general control tab.

2. So in the SO we want that when the customer cross the credit limit, there should be only warning message. then we will assign A. in this scenario the SO can be saved. In this scenario the business deceides what further acrions can be taken to get the payment from the customer. This can be used for regular customers

3. With error message message settings the order cannot be saved. this we will use when the business wants that the order should not be processed further when the customer cross the limit. This can be used for one time customers

4. The other one can be used where there you want that SO should be saved, but there should be delivery block. indicating that goods issue will be there after the customers payment only.

5. During the sale order, a total of sales value is considered for the credit check. which you assign in pricing procedure.i.e in SUB field we will give 'A'. This value is considered for credit.

6. The credit exposure results from the total of the net document value and the value of the open items.

regards

prasad

Former Member
0 Kudos

Hi gurus,

I am thankful & grateful to all the people for sharing the knowledge.

I know tran code OVA8 where we can maintain credit limit

in this, clicking on either static or dynamic. I think there is no option for Simple credit limit.

i can assign to sales doc in OVAK.

I want to know if I assign simple credit check to sales doc ie,

A, B, & C which is for Simple credit check. So while creating

sales order what values does it take into consideration for credit check.

i hope i adress my queries. Kindly give your some inputs & knowledge.

Thanks

Rakesh

jignesh_mehta3
Active Contributor
0 Kudos

Rakesh,

In SImple Credit the following is taken into consideration:

Total Receivables from Customers

-

Special Liabilities (like Down Payments)

+

Special Receivables

The total of the above is considered as Credit Exposure

Hope this Helps...

Give points if useful...

Thanks,

Jignesh Mehta

Former Member
0 Kudos

Hi,

open order and open delivery will consederd.

Best regards,

venkataswamy.y

Former Member
0 Kudos

Hi there,

Credit management is active only when you assign the company code to the credit control area & sales area to the credit control area.

Then in SPRO --> SD --> Credit mamagement you define the characterstics of creit control areas.

So with that, when you enter a sales order, system will immediately call the credit check. If as per the credit management settings. customer falss behind the credit, then a credit block is raised.

How the credit check is done is controlled in OVA8.

Regards,

Sivanand

former_member204513
Active Contributor
0 Kudos

Dear Rakesh,

Based on your defined credit check type system will consider the credit value to credit check

Different Types of Credit Checks

You can define any of the following credit checks for various combinations of credit control area, risk category, and document credit group:

Static Credit Limit Check

The customer's credit exposure may not exceed the established credit limit. The credit exposure is the total combined value of the following documents:

- Open orders

- Open deliveries

- Open billing documents

- Open items (accounts receivable)

The open order value is the value of the order items which have not yet been delivered. The open delivery value is the value of the delivery items which have not yet been invoiced. The open invoice value is the value of the billing document items which have not yet been forwarded to accounting. The open items represent documents that have been forwarded to accounting but not yet settled by the customer.

Dynamic Credit Limit Check with Credit Horizon

The customer's credit exposure is split into a static part; open items, open billing, and delivery values (see above), and a dynamic part, the open order value. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify (days, weeks, or months). When you define the credit check, you can then specify a particular horizon date in the future (for example: 10 days or 2 months, depending on the periods you specify). For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit.

Maximum Document Value

The sales order or delivery value may not exceed a specific value which is defined in the credit check. The value is stored in the currency of the credit control area. This check is useful if the credit limit has not yet been defined for a new customer. It is initiated by a risk category which is defined specifically for new customers.

Changes Made to Critical Fields

The credit check is triggered by changes made in the document to values in any of the credit-sensitive fields. According to your Customizing settings, the system runs a check credit between changes or differences in the sales order data against the default values in the customer master record. Examples of such fields are terms of payment and fixed value dates.

Date of Next Review

Uses the date of the next credit review as a trigger for an automatic credit check. If you process a sales order after a customer's next review date has already gone by, the system automatically carries out a credit check.

Overdue Open Items

The relation between open items which are more than a certain number of days overdue and the customer balance may not exceed a certain percentage.

Oldest Open Item

The oldest open item may not be more than a specified number of days overdue.

Maximum Number of Dunning Levels Allowed

The customer's dunning level may only reach a specified maximum value.

User-Defined Checks

If you want to carry out checks other than the standard checks, you can define your own checks in the appropriate user exits in Customizing for Sales.

I hope this will help you,

Regards,

Murali.

Lakshmipathi
Active Contributor
0 Kudos

Dear Rakesh

Run T.Code OVAK

thanks

G. Lakshmipathi