on 03-31-2010 12:07 PM
Hi Experts,
Need your help to understand the business scenario where we can use Simple Credit Limit check and in which Scenario we can use Automatic Credit Limit Check.
Thanks in Advance,
VNR
SAP recommends not to use simple credit check (A, B or C in OVAK).
The only reason it still exists in the R/3 standard system is the
compatibility of R/3.
See the following oss notes for some of the issue surrounding the simple
credit check: 424086 and 370785.
Simple credit check is the old credit management system. In this check,
the system sums up the receivables, the open items from special G/L
transactions and the net value of the sales order. The total is compared
with the credit limit. However, automatic credit check (D) has much
greater functionalities including the consideration of open order value
in the credit calculation.
Moreover, with simple credit check the system does not determine a
credit status (VBUK-CMGST) since this function is reserved for credit
management (that is, for automatic credit check-> D). You can also check
oss note 370785 for further information about the simple credit check.
I hope this helps.
Gerard
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Hi,
These credit checks are not used for different business scenarios wise..but for the business requirements...
In simple credit chck the scope for the credit check is very limited..i.e, only System totals the receivables, the open items.
But in Automatic u will have a wide options to check the customer limits..say, dynamic with Horizon..Max Doc.value..oldest open items etc..which is not avail in simple...
After all, these both can be used for all businesses but the choice of the selection shuld be from the requirement of the business..
Hope this hels...
Reg,
JJ
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