credit function in ERP

[Former Member]

Dear all experts, could you please explain how the credit function in ERP integrates with sales & distribution and with Financials(FI) thank you. lokisandra

[Former Member]

I am still confused about how credit function integrates SD and FI

[Former Member]

Hi i go through this link, it may solve ur quiery

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FIARCR/FIARCR.pdf

regards

Satish

[Former Member]

Dear Lokisandra,

Let me tell you this integration with simple example:

Say you are a seller of FMCG products. And for smooth running of business you need your product should sell fast, should visible in market and also you capital inflow and outflow should be in synch.

Now in business you have to sell most of the times in credit. If your customer Say Mr XYZ has ordered you products worth of 1 Crore, and as per your conditions the payment due date is 30 days from delivery, now Credit Management in SAP provides us the facility to block the order if the customer exceeds the credit limit, if the customer did not pay in time etc. It is required to maintain the Capital inflows, otherwise the company will be on bad debts.

The integration comes basically 1. While creating sales order, customers advance payment, sales value, credit exposure, these all will calculate from SD and FI part, as FI will have only records of Payment transactions.

2. While receiving the advance payment in case customer exceeds the credit limit.

I hope this makes you clear about the Credit management in ERP.

Thanks,

Raja

[Former Member]

Hi ,

please go through this link....

http://help.sap.com/saphelp_bankanalyzer50/helpdata/en/13/a5b43feddd330ee10000000a114084/content.htm

Regards,

venkataswamy

[Former Member]

Hi

Credit management is SD and FI integration Functionality

Using Credit mangement system blcok the sales order, delivery and PGI for futher processing when Customer credit limit exceeds.

Credit limit can specify at Credit control area which assigned to Company code ( FI)Applies to all customer fall in to this company code, and defining credit groups and risk category assigned to document types you want to blcok during tranasations.

Also you can specify individual limit in FD32 for a customer.

Here need to consider static and dynamic credit checks, harizon dates.

you have option to set warning or error message during credit check

you can realsed the sale order which is blcoked to credit check in VKM3, in business normally this done by authorization persons.

Check for sap.help for more info for configuration

regards

satish

[Former Member]

thank you