Credit check with reference to Payment terms

[Former Member]

Hi SAP Gurus,

Presently I'm working for requirment where the credit has to happen based on Payment terms of the customer.

For example -

Payment terms - N45 or N90.

For every order system has consider and check back the 45 days old documents or 90 days old documents for the credit check calculation.

Note - When I check the crical field in T code - OVA8, It is used to do the credit check once if there is a change in payment terms,Additional value days and fixed value dates and I think this won't be helpful for my requirement.

Can you please advise me...

Thanks & Regards,

Pugal Stalin

[Former Member]

This is fixed by removing the 10% from the seasonal factor in OVA8

[Former Member]

Hi

System will check the open item s depending on the base line data in the FI document (already been invoiced)which will triggered from payment terms.

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

you need to do the below setting to activate the same.

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.in

this you need to tick oldest open items and maintain as "D" in Reaction

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]

Hi Damu,

Thank you so much...I'm aware about the basic settings...

My question is with ref., to payment terms ..Credit check has to happen..

Thanks & Regards,

Pugal

[Former Member]

Hi

I think the requirement is not possible in the standard ,i gave the solution as per the standard business process

Regards

Damu

[Former Member]

Hi,

In T code - OVA8

Select option open orders & open deliveries

and speciefy day's

No. Days open Items and Days oldest Item

Kapil

[Former Member]

Hi Kapil,

Your suggestions are related to Automatica credit control area based.

But My requirement is towards the payment terms Vs Credit Limit check..

Thanks& Regards,

Pugal Stalin

[former_member209761]

Hi Pugal,

If you want to have credit check based on payment terms, please do the following configurations.

1) Credit management configuration ( explained by Damu neatly, which you claim to have done.)

Credit check based on payment term alone is similar to other checks except, we TICK the check based on OLDEST OPEN ITEM and make the status as WARNING or ERROR in OVA8.

2) now in customer master, please maintain the payment terms in company code as well as sales view.This will help to

have different credit periods for different customers.

Dont specify the days against the No. Days open Items and Days oldest Item in OVA8 ( if the date is maintained, then this date

will be considered for all the customers in that Credit control area/ risk category combination.)

3) the OVFL assignment ( sales ares to credit control area ) and the FD32 ( customer credit master data should have the risk category assigned).

For testing.. create a customer X with 45 days payment terms.

(plz check which date is considered in OBB8 ( mostly we keep it as posting date)

If your system allows backdated billing, create a invoice for x 46 days before the present date.

ie, if you are doing the invoice today 09/02/2010 , put the billing date as 25/12/2009.

save the invoice and in FBL5N, for the customer you can see this invoice as open item.

Now, create a sales order on todays date.That time system will throw you the error or warning as set by you in OVA8 at sale order/ delivery/PGI levels as set in OVAK / OVAD .

Now in FD32, you take EXTRAS--> oldest item. here we can see the open invoice value created on 25/12/2009 and also NET ARREAR date as 1... since 45 days is the credit period and today is the 46th day from the 25/12/2009.

Hope you will do this and revert back.

Thanks & regards,

Hegal

[Former Member]

Hi Hegal,

Thanks for the input, The logic you have mentioned is really wonderful. System consider the backdated document but not related to Payment terms due date basis...

PLEASE REVIEW THE ANALYSIS BELOW AND ADVISE...

I have followed the steps as suggested from your end.

1, Created a new customer - C123

2, Config setting in OVA8:

Update - 00012

Dynamic with Warning message for Open order and open delivery

Horizon field in removed.

As you said there is "No validation in Open item and Oldest open item"

3, Created Sales order with Payment terms N30 (30 days due date) , Delivery, Billing 120EUR.

Billing date changed to past date.that is 22nd Dec 2009. (from backward of order creation it's more than 30 days)

4, Credit master is created for payer C123 through T code FD32 with Credit limit as 100 EUR

5, Again created sales order for 20EUR and system gives the warning message.

6, When I check FD30 - credit master, system shown the credit exposure of 120 + 20 EUR = 140EUR.

Till this level it is fine...

It shows that system calculates the open item which is backdated as well as the present document.

After the finding I have cancel the Billing document and revers PGI cancled delivery and sales document (Total reversal)

Now, I've done the negative testing for N30 payment terms :

• Expected Postiive result : Our expected result is system has to take only the past dated billing document

of 22nd Dec 2009 only. Becasue backdated wise it is more than 30days.

I have created Invoice today (creation date - 10th Feb) and the billing date is 9th Feb.

As per our logic it needs to consider the billing which is created on 22nd Dec 2009 but the system is even

the 9th feb Invoice also.

Now you would have understood what I want ..... !!

May I know is there any approach that you suggest to consider only the 22nd Dec 2009 invoice that is based on Payment terms specific.

Please let me know in case of further information required.

Thanks & Regards,

Pugal

[Former Member]

Hi

Could you elaborate your requirement, it is not clear.

Payterms N45 - means 45 days credit on the sale order i.e. after billing this sale order, customer should pay within 45 days. On 46th day it will fall overdue.

In OVA8, you can use Open Items & Oldest open items to fullfil your requirement related to payterm.

thank you

[Former Member]

Hi Anirudh,

Thanks for the initial understanding..

In case of Oldest open document we can approach your suggestion...

My requirement is related to payment terms..

For eg. - Customer "A" has payment terms "N45".

At thetime of saving the sales document, system has to check the open document which are falling after 45 days of payment that is from 46 days.

It should not calculate the documents which are falling with 45 day... It has to consider the document for credit check only from 46th day...(after 45 day).

The same is applicable to payent terms - N90 (90 days).

Incase of open document , the system back checks the open document for credit limit check

But I want for payment terms where it needs to calculate the open document which are falling after the days of Payment terms..

Please let me know incase of some more details...

Thanks & Regards,

Pugal Stalin