credit management

[former_member681145]

Dear Experts,

How we can activate credit mgt in only billing level, there should not be any check in sale order ,delivery and PGI , only check ate billing level?

How we can do this functionality in std SAP ?

Regards

Ishikesh

[Former Member · Accepted solution]

Ishikesh,

Standard Process in SAP is providing check at three levels 1. Order level 2. Delivery Level 3. PGI level.

I have checked OVA8 details screen, the standard system does not provide solution with reference to billing.

If you want you can provide a "Billing Block" which you can remove after checking the credibility and other releavant details of the customer. You can also configure "Posting Block" to avoid automatic release to Accounts. Provide authorization to FI enduser

Basic question, why do you wish to have Credit Check at Billing Level? If you explain it would be better.

Regards

Sathya

[Former Member]

Hi,

The purpose of credit management is to stop excess supplies to customers, so SAP has provided at order, delivery and PGI levels.

In SAP PGI means goods already left our premises, once goods are left from your premises why do you need credit check?

I think you are thinking in wrong way, please discuss with business.

Hope this will convince you.

Venkat Cheedalla

[Former Member]

Dear Ishikesh,

This is not possible in standard SAP. It does not make sense to do goods issue (functionally you are delivering the goods to the customer) and you do not want to bill.If need be have posting block so that it does not post to accounting.But no company will do this.

Regards,

Nithin.

[Former Member]

IShikesh

It has no sense to put credit limit at billing level since you have processed delivery & PGI by that time and possesion of material my transfered to customer. There is no standard credit checks on billing.

[Former Member]

hello, friend.

there is no standard credit checks on billing because there really is no sense to put credit controls here. at the time of billing, we would have posted goods issue to the customers (delivery-related transactions) and the latter already has possession of the goods. you want to limit your company's risk before sending the goods to your customers; there is no point managing risk after you're sent the goods.

you normally do not want to prevent your company from billing the customers because this is what notifies your customers that we have receivables from them. instead, you want credit controls to focus on accounts receivables (result of posting billing documents to accounting). you also want it to focus on sales orders, deliveries and goods issue... more so because credit checks are a form of risk assessment/management.

if your requirement is special in a sense that credit management does not check sales orders and deliveries, this is possible. but you still should have to have control at goods issue and accounts receivables (in lieu of billing docs).

regards!

[Former Member]

Hi,

your requirment can be accomplished by making use of Simple credit check functionality WRT credit managment in SAP.

The following values are present for a document type in VOV8, so the required document type can be assigned A B or C . By assigning this, the system will compares payer master credit limit to the total of the net document value and value of all open items

No credit limit check

A Run simple credit limit check and warning message

B Rund simple redit limit check and error message

C Run simple credit limit check and delivery block

D Credit management: Automatic credit control

[Former Member]

Hi ISIKESH,

As far as Std SAP is concerned there is no possiblity of credit check being executed at billing level.

The last time there can be credit chekc is at PGI level.

Hoever you can set billing block at SO level and it will work similar to Credit Check.

But the million dollar question is why will there be a credit check at billing.

Not sure if this helps.

Thanks and Regards

Rohit