Credit Management Issue

[Former Member]

Hi,

Say, Automatic Credit Management has been implemented where a customer is granted individual credit limit of Rs 2 Lac.

Dynamic credit check is selected for the same with a horizon period of 3 days.

As per my idea, the said credit limit is consumed because orders for the abovementioned amt are booked and promise for the deliveries are committed within the horizon time frame.

My query is, do i need to redefine the horizon with new credit limits for the forth coming transactions for the same customer, if yes, how to go about it.

Pls mention the paths or Tcode as applicable for the abovementioned scenario.

Thanks in advance.

Syed

[sridhar_v]

Hi,

"As per my idea, the said credit limit is consumed because orders for the abovementioned amt are booked and promise for the deliveries are committed within the horizon time frame."

Within the above quoted lines interpretation is , the customer has already consumed his credit limit, so in such instances customer has to pay the bill, or it goes for the dunning.

"My query is, do i need to redefine the horizon with new credit limits for the forth coming transactions for the same customer, if yes, how to go about it."

Now in this context why do you go for redefining the horizon again ? In case if he fails to pay the new horizon too, what is the new step you gonna take ? So it is better for the realizatiion .

However still if you insist, for all the means you can maintain new credit limit in automatic credti control at OVA8 and instead of increasing or decreasing the credit limits uncheck the block at dynamic -A.

Or if you feel No for this unchecking then at NO CREDIT CHECK change the routine.

Or the last optiion change the credit limit.

I hope this would be helpful for you.

Regards,

Saplinx

[Former Member]

Hi,

"As per my idea, the said credit limit is consumed because orders for the abovementioned amt are booked and promise for the deliveries are committed within the horizon time frame."

Within the above quoted lines interpretation is , the customer has already consumed his credit limit, so in such instances customer has to pay the bill, or it goes for the dunning.

Queries for the above statement

1. Let's say, the customer has paid the amount of the credit limit consumed, the business has also received the same amt too.Now the business wants to increase his credit limit by another 2 Lacs to make it to 4 lacs in total for the forthcoming transactions, and at the same time the business wants to increase the horizon period to 10 days instead of 3 days. How to go abt it.

2. My second query is, so far as dynamic credit check is concerned, my understanding is that it calculates the value of all the open sales orders for credit check whose deliveries are falling within the horizon period frame. Pls verify my understanding, whether i am right or wrong.

[PhaniKalvagunta]

>

> 
> Queries for the above statement
> 1.  Let's say, the customer has paid the amount of the credit limit consumed, the business has also received the same amt too.Now the business wants to increase his credit limit by another 2 Lacs to make it to 4 lacs in total for the forthcoming transactions, and at the same time the business wants to increase the horizon period to 10 days instead of 3 days. How to go abt it.
There is no customer specific horizon period but you can maintain the same for a group of customers based on risk category.
> 
> 2. My second query is, so far as dynamic credit check is concerned, my understanding is that it calculates the value of all the open sales orders for credit check whose deliveries are falling within the horizon period frame. Pls verify my understanding, whether i am right or wrong
You are right..

Regards,

Phani Prasad

[Former Member]

Hi,

[Former Member]

Hi,

Thanks for the answer from your end.But pls tell me how to increase the Individual limit of the customer.Pls tell me how to configure a credit representative in credit management and briefly explain it's fuctionality.

Thanks & Regards,

Syed

[PhaniKalvagunta]

Hi,

Goto FD32 and change the individual credit limit in Central Data and Status Screens.

I did not deal with the credit representative scenario and let you know once I test the same.

Regards,

Phani Prasad.

[sridhar_v]

Hello,

"Queries for the above statement

1. Let's say, the customer has paid the amount of the credit limit consumed, the business has also received the same amt too.Now the business wants to increase his credit limit by another 2 Lacs to make it to 4 lacs in total for the forthcoming transactions, and at the same time the business wants to increase the horizon period to 10 days instead of 3 days. How to go abt it.

2. My second query is, so far as dynamic credit check is concerned, my understanding is that it calculates the value of all the open sales orders for credit check whose deliveries are falling within the horizon period frame. Pls verify my understanding, whether i am right or wrong."

For the posted query, I like to say you can change the credit limit & Horizon Period in FD32 . The next thing is if dont want any credit check then go to OVAK and simply find your order type and blank the credit group.

With regards to your second question you are right, and yet I want to say

Dynamic CC - Has dates & check the status of credit exposure within that period.

Static CC - Here It tries to locate all the pending invoices and payments for that customer.

Regards,

Saplinx.

[Former Member]

Hi Venkataswamy,

I know the horizon is maintained in ova8.To put more clarity in the topic, let me explain the fact in details hereinbelow.

Suppose the credit management is implemented newly.It's an decentralized credit management. There a customer is given a

total and individual credit limit of Rs 2 Lacs and the same is monitered under one credit control area.It's an automatic

credit control with dynamic credit check, and the horizon is for 3 days only, let's say from 14th Feb, 2011 to 16th Feb, 2011.

The customer is having dynamic credit check with horizon period for 3 days and Rs. 2 Lacs is it's credit limit.Now the customer has placed order of 2 lacs and sales order for the same is booked too, the delivery promise is made within the horizon period, i.e.16th February, 2011.

Any order value placed within the horizon period will be an over limit resulting to a credit block.

My query is after the horizon period, in case of dynamic credit check for the customer, do we need to maintain fresh

individual limit with new horizon period individually for all the customers.

Pls mention the process and Tcodes to maintain the same.

Thanks in advance.

Regards

Syed

[Former Member]

Hi,

Why u want to redefine the credit limit? once the customer pays the money it will update the cerdit limit of that customer and u can raise the sales order and if he is not paying then sales get block for credit and Authroised user can release by using the T code VKM3

if u want to change the horizon time use T code OMO1, be careful it will change to all customers who are into that group.

Regards,

Nagesh

[former_member183879]

If you are in ECC6, you can change horizon in FD32. If you are in lower versions, this is not possible. However though it is technically possible to change horizon days, it will have impact in the old transactions you have already done also. So accordingly, you have to consider the existing consumption and the total limit you want to give to the customer. Your new credit limit should include the already utilised 200000.

[Former Member]

Hello,

Go to ova8 and change the horizon period,as per My understanding ,can you please state your Question more clarity.

Thanks,

venkataswamy.y