Credit Management - Maximum time overdue limit for open item

[Former Member]

Dear all,

I've this scenario to configure for automatic credit control. A customer is billed on Jan 22nd '10 and now the account receiveable shows an open item. This customer is allowed 52 calendar days to make payment for this invoice, hence no credit block yet. As such, the customer can still make orders.

In my existing configuration, I've already enable "static" credit check on "open orders" and "open deliveries". The static check is to check against the customer's credit limit.

So, if I were to add in the earlier mentioned overdue open items check, is it sufficient to just maintain the field "Days oldestItem" with "52" within the automatic credit control screen?

Thanks.

Steven

[Former Member · Accepted solution]

Hi

The sytstem will shows oldest open items depending on the payment terms from the invoice date.

Once it crosses the days of payment then it will show in oldest open items

if you want to extend some more days for that then you need to maintain the days in "Days oldestitem" the automatic credit control area

Prerequisites for credit management to work in Sales and Distribution:

1.Assign credit control area to company code

2.Maintain the credit limit in FD32 with details of risk category and the credit limit value

3.Do the settings in OVA8 -automatic credit control area with combination of Credit control area/Risk category /credit group.

4.Assign the credit groups to the sales and delivery document types.

5.Maintain the Subtotal 'A' in the pricing procedure against which value the sytem should check the credit limit.

If you have any further clarifications on above let me know

Regards

Damu

[Former Member · Accepted solution]

My existing configuration under the automatic credit control for Delivery is:

1. Static = "Tick"

2. Reaction = "C"

3. Status/Block = "Tick"

4. Open deliveries = "Tick"

5. Days oldestItem = "22"

If I understand your explanation correctly, the "Days oldestItem" is meant to allow additional extension. I.e. the payment terms allowed in the Customer master is 30 days which carries over to the Sales Order until Billing. Hence, if I were to maintain the "Days oldestItem" field with 22 days, the maximum alllowable days will be 52 days for the customers oldest unpaid invoice. For this, do I need to: "Tick" the OldestOpenItem, Reaction = "C" and "Tick" the Status/Block?

Thanks.

[Former Member · Accepted solution]

Hi

Yes you need to check the oldest open item also and the reaction .

if you have any fyrther clarifications let me know.

Regards

Damu