Credit check for the first sales order

[Former Member]

Friends,

We are using dynamic crdit check.

we set credit limit for Rs 100000. Now when I am creating first sales order for Rs. 500000, system allow to do it.

Practically it should not allow to do it. How to handle this? please help.

Thanks

[Former Member · Accepted solution]

Hello ,

1) Open Doc

2) Open Delivery

3) Open Billing

4) Open Items

5) Horizon Period = Eg.3Months

Here the System will not consider the above 1, 2, 3 & 4 values for the lost 3 months.

you Might Maintain the horizon period .... example 2 months then system will ignore all the open sales orders.

please check your configaration in ova8.

Thanks,

venkataswamy.y

[Former Member · Accepted solution]

Hi Venkataswamy,

Thanks for reply.

Should I keep Horzon period blank in this case to restrict first sales order?

Please guide.

Thanks

[Former Member · Accepted solution]

Hello,

The customer's credit exposure is split into a static part - open items, open billing, and delivery values - and a dynamic part, the open order value. The open order value includes all not yet or only partially delivered orders. The value is calculated based on the shipping date and the credit horizon you specify in the adjacent field. For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit.

Example

You specify a horizon of 4 M (months). For the purposes of evaluating credit, the system ignores all open orders that are due for delivery beyond the four month horizon you specified.

Thanks,

venkataswamy.y

[Former Member · Accepted solution]

Dear Venkataswamy,

Thanks for guidance.

Configuration done by me are as follows:

in OVA8: Dynamic Credit check Reasction: D Horizon : blank

Further created new customer & set credt limit for him for Rs .20000.

Then created sales order for Rs 25000. System dont give any error message.

Please help.

Thanks in advance.

[Former Member · Accepted solution]

Hello ,

Have you checked in FD32 ,Have you assigned the Risk category in FD32,and Even the customer Master.

Thanks,

venkataswamy.y

[Former Member · Accepted solution]

Hi venkataswamy,

Thanks for help.

If I am using Dynamic credit check how it split into statuc and dynamic part?

Please throw light on this.

Thanks

[ajitsingh6 · Accepted solution]

Dear ,

Please check following settings,

First check in the FD32 the risk category is assigned or not.

Check in the OVA8 activate the Static button and selct the open order field should be activate.

And also check the open order field selct the B otpion and status butoon should be activated

Note: In OVA8 deactivate the Dyanmic field and dont maintin the Horizon period..Very important Point

Regards

AJIT K SINGH

[Former Member · Accepted solution]

Dear Ajit,

Thanks for help.

we want to use dynamic credit check. In this case I must acivate idicator for dynamic credit check.

Isnt it?

Please let me know major difference between Static and Dynamic check.

Thanks

[Former Member · Accepted solution]

Dear Pratap,

Enusre that in OVAK, you have the check credit as D and the credit group as 01.

The credit check will be either static or dyanmic based on which indicator you are choosing in the transaction OVA8.

Open order:Orders which are not delivered and relevant for credit check.

Open delivery: Delivery which is not invoiced and relevant for credit check.

Open billing doc: Invoice to which accounting document is not genereated yet in the system.

Open Items: Accounting documents which are due from the customer, and cleared in the system yet.

These are all the basic definitions to explain the difference between static and dynamic check.

The difference between the static and dynamic check is as below.

In case of static check, all the open order, open delivery, open billing document, opn item will be considered during the credit check.

In case of dynamic check, you will be specifying the HORIZON period which will restrict the open orders to be considered for a certain period.

That is to say, if you keep the HORIZON as 2 M, then the orders which are due for delivery beyond 2 months will be ignored; remaining open orders, open delivery, open billing document, open itms will be taken into consideration as it is.

If you don't use the HORIZON period, I would suggest you to activate the indicator STATIC rather than dynamic. Hope this clarifies.

Please do revert if need any more clarification.

thank you

Venkatesh SP

[Former Member · Accepted solution]

Thanks for the guidance.

In OVA8 There is one field Critical field

Additional value days,

Fixed value date

What is use of above field and where we can see it in customer master?

Thansk

[Former Member · Accepted solution]

Hello Pratap,

Please go through GLYNN C WILLIAMS book to understand more on credit management process.

The use of critical field is self explanatory. If you are making changes to the critical fields in the order like payment terms, Fixed value date, additional value days (in billing document tab of the sale order) - then, should the order get blocked; this will be decided by OVA8 settings.

Hope this helps.

thank you

Venkatesh SP

[Former Member · Accepted solution]

Dear Venktesh,

Thanks for your all guidance and help.

[former_member365422]

Daer Pratap,

Since you are using dynamic credit check i.e. Automatic credit control, please check whether your configuration is correct.

In Sales document type "Check Crerdit Limit" = D

Check settings in OVA8, Combination of Credit control area + Risk Category + Credit Group

Customer Credit master(FD32) is maintained in correct credit control area.

Ensure Correct Risk category is maintained in FD32.

please check and confirm.

Regards

Mayank

[Former Member]

Hi Mayank,

Thanks for reply.

All configurations are correct.

It is observed that once you create first invoice, FI- SD intigration takes place and first time credit limit will update.

Further if you create sales order exceeding credit limit you will get error message.

This is std functionality. How to restrict first sales order iteslf.

Thanks

[former_member365422]

Dear Pratap,

I dont think it is a standard functionality. System must give error on first order itself.

Can you share what all configuration you have done in system.

Regards

Mayank