Does Simple Credit Limit Check Include Checking for Open Orders

[Former Member]

Hi all,

I have this issue here where I have configured the system to use simple credit limit check with error message. I did not use the standard/common automatic credit limit check since user insist on a pop-up warning and that the order could not be saved. But, I realized that it does not take open orders into account too although I have set the risk categories. Is it true and what solution is there for this issue then.

Thank you for all your help in inputs.

Regards,

Yvonne

[Former Member · Accepted solution]

hi,

But, I realized that it does not take open orders into account

simple credit check will take the open items into account,

please check the following,

OB45 - credit limit , risk categories

OVFL - assign sales area to credit control area,

regards

senya

[Former Member · Accepted solution]

HI,

I have configured all that even though I am not using automatic credit limit check. But, system still does not take in my open items.

No idea what is the reason.

Thank you.

[Former Member · Accepted solution]

Hi,

Pls check whether you have marked the fields "open order" in customization of risk category.

This field is avilable next to recation of simple credit check.

Regards

Sanjay

[Former Member · Accepted solution]

Hi,

I have checked both 'open order' and 'open deliveries' under each category. During the current testing, I configure the simple limit check to automatic credit control only the check takes in the order value (in FD32) and display the correct credit limit which is receivables + open orders - credit limit. Else, it will only take receivables - credit limit which is wrong and not up to my client's requirement.

Thank you.

[Former Member · Accepted solution]

Hi,

Pls check what Update group you have mentioned in OB45

whether update is "Blank" or "000012" or somethingelse.

regards

Jai

[Former Member · Accepted solution]

Hi,

My update group is '000012' alright.

Thank you.

[former_member365422 · Accepted solution]

Hi Komal,

Configuring in OVA8 wont be of any help since you are using simple credit check

FYI

During the Simple Credit limit check, System totals the receivables, the open items from special G/L transactions and the net value of the sales order for every item of a sales document.

It does not takes open order and open deliveries into consideration.

If you want to Open order & deliveries to be considered, you have to use Automatic credit control functionality.

In VOV8 or OVAK select check credit limit as D i.e. Automatic

Assign risk category for customer in FD32.

Go to OVAK and assign credit group

In OVA8 maintain combination of CCA + Risk Cat + Credit Grp and in detail screen select static check, Reaction as D(Since you want error message) and select Check box of Open Order and Open Deliveries

Then try it will work

Regards

Mayank

[Former Member]

Hi,

Please follow the below configuration settings for Simple credit check process.

Simple credit check: In simple credit check the system compares the credit exposure with payers credit limit. The

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

We can set the following system responses at when the credit limit has been reached.

A u2013Warning message

B u2013 Error message

C u2013 Delivery block

Specify in VOV8  Credit limit [C]

Configuration settings:

Sales documents types u2013 Credit limit check: Transaction code: OVAK

Path:

 IMG

 Sales and Distribution

 Basic functions

 Credit management/Risk management

 Simple credit limit check

 Choose sales document type OR

 Specify value

[ ] = No credit limit check

[A] = Run simple credit limit check and warning message

<b> = Run simple credit limit check and error message

[C] = Run simple credit limit check and delivery block

 Save and Exit

Define credit control area: Transaction code: OB45

Credit control area is an organizational unit that specifies and checks the credit limit for customers. A credit control

area can include one or more company codes. It means we can assign one credit control area to number of company

codes.

NOTE: Within credit control area the credit limit must be specified in the same currency.

Path:

 IMG

 Enterprise structure

 Definition

 Financial accounting

 Define credit control area

 Go to new entries

(OR)

 Choose existing credit control area

 Select it and click on copy icon

 Rename it and click on details icon

Specify currency [INR]

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Data for updating SD fields

Update [000012]: Open order value on time axis, delivery and billing document value. This field value controls

when the values are open sales orders, deliveries, billing documents are updated in LIS. We can specify the

following update groups for updating credit related statistics.

 Update group 000012:

Sales order: Increase open order value from delivery relevant schedule lines.

Delivery: Reduces open order value from delivery relevant schedule lines.

Increases open delivery value

Billing document: Reduces the open delivery value, increases open billing document value.

Financial accounting document: Reduces open billing document value

Increases open items.

 Update group 000015:

Delivery: Increases open delivery value.

Increases open billing document value.

Financial accounting document: Reduces open billing document value

Increases open items.

 Update group 000018:

Sales order: Increases open delivery value

Billing document: Reduces open delivery value.

Increases open billing document value.

Financial accounting document: Reduces open billing document value.

Increases open items.

Fiscal year variant [K4]: It indicates specific fiscal year variant for particular credit control area. The fiscal year

variant is essential when a credit control area covers multiple company codes whose fiscal years are different. Then

the values of the open orders are updated by posting period.

Specify risk category [001]: 001 = High risk

002 = Medium risk

003 = Low risk

This risk category entered in the related control area of the customeru2019s credit master record, which is automatically

created when a customer is created in a company code.

The credit master record is automatically maintained when at least one of the below fields is maintained for the

corresponding control area.

(A) Risk category

(B) Credit representative group

(C) Credit limit

Credit limit: The credit limit that we enter here in the specific credit control area of the customeru2019s credit master

record. This is automatically created when a customer is created in a company code (in XD01).

NOTE: This credit limit is not a total credit limit for the control area.

Representative group [001]: Define credit representative group in IMG.

 All company codes: If we want to tell to the system that, this credit control area is permitted for

postings in every company code we have defined.

 Save and Exit

NOTE: After this create Risk categories and Credit representative groups and come back to this step and assign

these values to our credit control area.

Risk category and Representative group defined and maintained by FI/CO consultants in IMG.

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Assign company code to credit control area: Transaction code: OB38

Path:

 IMG

 Enterprise structure

 Assignment

 Financial accounting

 Assign company code to credit control area

 Choose our company code from position button

 Click on assign button on the application tool bar

 Select our credit control area from the list and assign it

 Save and Exit

 Go to FD32 and check whether system created customeru2019s credit master data automatically or not.

System creates customers credit master data automatically when we (FI/CO) people) configure credit control area in

IMG.

So as to perform simple credit check we have to specify customer master payers limit in the credit control area, and

create customer master in XD01 transaction code.

 Specify reconciliation account number (GL account number)

 Payment history record: Check payment history record control in payment transaction tab. It is the

control parameter to update the payment details that are made by customers and system will show the

payment details in the FD32.

 Specify the credit control area in credit control area field in billing document tab.

 Save and Exit

 Go to VA01 and raise the sales order

Check the system responses in each and every level of sales document processing and check whether the system

blocked the delivery document (due to the setting in VOV8 of OR in check credit limit field [C] = Blocked for

delivery).

 To release the delivery go to VKM4 and release the delivery document.

[Former Member]

I am also facing same problem. Any conclusion if you have reached then please share.