Simple credit check

[Former Member]

Hi Gurus,

I have configured simple credit check but it is not working. I have checked all settings and they seem to be fine. Please advice If I have missed some thing in the below steps.

Defined credit control area with update group 00012.

Assing co code to credit control area.

assign sales areas to credit control area

assing cusotmer to credit control area and define credit limit in fd32.

in sales doc type select credit limit as B( which is simple credit limit check with erroe message)

in Item category checked that document is relevant for credit check.

Still simple credit check is not working although i tried my settings for automatic check and they are working fine.

Please advice about the same.

[Former Member · Accepted solution]

Hello Komal,

Simple Credit Check considers Doc.Value + Open Items .

Doc.Value : Sales Order Has been saved but not delivered

Open Item : Sales Order has been saved , Delivered, Billed & Transfered to FI, but not received the payment from the customer.

Eg: Customer Credit Limit is Rs.20,000/-

Suppose Doc.Value + Open Item Value is Rs. 25,000/-

Here credit limit exceeds then system reacts.

Options : A) Warning Message

B) Error Message (Sales Order won't be saved)

C) Error Message with Delivery Block

Regards/Rajesh

[Former Member · Accepted solution]

HI Rajesh,

I would summarize how the system is workign in my case. correct me if i have missed some configurations in case of simple credit check. I have already mentioned my configs above.

When I make sales order the system compares the total of order net value with credit limit plus open items in the ledger and not with the open sales ordres or deliveries.

On saving the order it will increase ther credit exposure as seen in fd32 but unless that order is invoiced the system is not considering that exposure while making next sales order unless invoicing is done for that order.

What could be the reason????

[former_member365422 · Accepted solution]

Hi Komal,

This is because simple credit check does not compares credit limit against credit exposure field in FD32. It compares credit limit with sum of Net value of current order + total receivables + Special G/l

If you want to consider open orders and deliveries then you have to use Automatic credit control.

There are many previous posts on configuration of automatic credit control please refer them.

Regards

Mayank

[former_member365422]

Hi Komal,

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,

Yes you are correct. The system is taking net value only and not even the tax amonut.

Can you please elaborate on what you are saying as special G/L accounts. Thanks

[former_member365422]

Dear Komal,

Special G/L includes Down Payments, Bills of exchange, Guarantees Etc.

Regards

Mayank