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Credit LImit

Former Member
0 Kudos

Dear Experts,

We have used Automatic Credit check & its work fine no issue. only in case of credit limit available for example Rs.500/- & if we have create the billing document with value Rs.1000/- (Grater then The credit limit value ) system allowed to creating the invoice.

How to restrict it.

Regards

BK GAIKWAD

Accepted Solutions (0)

Answers (4)

Answers (4)

former_member188076
Active Contributor
0 Kudos

Hi,

Go to VOV7 and for your Item Category select the check box of Credit Active.

Then Test the scenario. Hope it will resolve your issue.

Thanks and regards,

Amitesh Anand

Former Member
0 Kudos

Hi,

Kindly check the Automatic Credit Control settings at OVA8.

Select the Credit Control Area/ Risk Category /Credit Group

At Bottom, you can choose Dynamic or Static based on your requirement-> at Reaction select 'B' this will give Error Message and restric user from saving the respective document at Creation of Sales order/ at PGI etc.

Thank You,

RB.

Former Member
0 Kudos

Automatic credit check

We can configure credit related management functions that are to be carried out by the system automatically.System automatically carries out credit related management functions by taking some factors into consideration.

In automatic credit related functions system gets the credit exposure of a particular payer by taking factors like:

(1) Open sales orders (that are raised, yet to pass to delivery process) +

(2) Open delivery documents (that are raised, yet to pass to PGI) +

(3) Open PGI documents (that are PGI process done, and yet to pass to billing document) +

(4) Open billing documents (that are raised, but yet to pass to accounting (FI) +

(5) Attachment/Time/Horizon period. Ex: 2 Months.

Horizon period: It is the period in which system will take the above sited all open documents into consideration

that falls during this period. This time period only applies for dynamic check. It will not be applied for static. As in

automatic credit check SAP provides Dynamic and Static methods.

Configuration steps:

Define credit control area: Transaction code: OB45

Path:

 IMG

 Enterprise structure

 Definition

 Financial accounting

 Define credit control area

 Go to new entries

(OR)

 Choose existing credit control area

 Click on copy as icon

 Define our credit control area by changing the data

 Save and Exit

Assign permitted credit control area to company code

Path:

 IMG

 Financial accounting

 Accounts Receivable/Accounts Payable

 Credit management

 Credit control account

 Assign permitted credit control areas to company code

 Go to new entries

 Assign credit control area to company code

 Save and Exit

NOTE: Definition and assignment takes place in single step. Here we can assign u2018Nu2019 number of credit control

areas to one company code.

Path:

 IMG

 Enterprise structure

 Assignment

 Financial accounting

 Assign company code to credit control area

 Choose our company code from position button

 Click on assign button on the application tool bar

 Select our credit control area form the list

 Assign

 Save and Exit

NOTE: If our client has different business areas, we can assign each business area with credit control area.

Ex: 0001 for business area u2018Au2019.

0002 for business area u2018Bu2019.

0003 for business area u2018Cu2019.

In this case the same customer master record can have different credit limits for different business areas.

Define risk categories: Transaction code: OB01

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Define risk categories

 Go to new entries

 Define our risk categories

Ex: 001 = High risk

002 = Medium risk

003 = Low risk

 Assign our risk categories to our credit control area

 Save and Exit

NOTE: Definition and assignment takes place in one step.

Define preliminary settings for credit management

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Define preliminary settings for credit management

 Check credit read A/R summary

 Check create A/R summary

 Save and Exit

Define text IDs for credit management: Transaction code: OBT3

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Define text IDs for credit management

 Check relevant text for 0001 = Internal information

0002 = External information

0003 = Action

 Save and Exit

Maintain text IDs for central text in credit management: Transaction code: OBT3Z

In this context central means that the texts are independent of a credit control area.

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Maintain text IDs for central text in credit management

 If we want we can CHECK relevant text

 0001 = Test

 Save and Exit

Define credit representative groups: Transaction code: OB02

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Define credit representative groups

 Go to new entries

 Define credit representative groups

 Save and Exit

NOTE: Assignment also does here.

Define groups

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Define groups

 Go to new entries

 Maintain credit management group for credit control area

 Save and Exit

NOTE: Assignment also does here.

Define credit representatives: Transaction code: OB51

Path:

 IMG

 Financial accounting

 Accounts receivable and accounts payable

 Credit management

 Credit control account

 Define credit representatives

 Go to new entries

 Specify credit representative, credit control area, and partner function (KB = Credit representative)

Specify partner counter (The sequential number that the system applies when there is more than one

partner for a particular partner function)

 Check CO (system copies this credit representative into sales order)

NOTE: Create a partner function for representative by copying KB (in basic functions  Partner functions

determination) and specify it here.

 Specify personal number

 Save and Exit

 Go to FD32

Specify customer number and credit control area

Overview

 Overview

General data

 Address

 Central data

Credit control area data

 Status

 Payment history

Customeru2019s credit master record has been segregated as above sited sections. Maintain the data in the above-sited

sections.

Overview: In this section we can have the overview of the customers credit related information like credit limit,

credit exposure, credit limit use, horizon, etc.

 Click on  Next icon

Address: In this view system copies address details from customer master general data section

 Click on  Next icon

Central data:

Maximum permitted credit limit

The value of this field specifies the overall credit limit that the customer may receive in all credit control areas.

Individual limit: The value of this field specifies the credit limit of the customer within specified credit control

area.

Currency INR: We can specify the currency type that the particular customer makes a transaction from this credit

control area.

 Click on  Next icon

Credit limit data

The amount that we enter here specifies an upper limit for the total receivables and the forcible (expecting)

receivables from the customers.

Credit horizon data: It is a date that the system takes to calculate credit exposure by using horizon period.

Internal data

Risk category 001 = High risk: Specify the risk category of customer that we defined in IMG.

 Specify credit representative group and customer credit group

[] Blocked: We can block the customer for all credit management business transactions.

Ex: Order acceptance, delivery, goods issue.

But we still post that invoices for goods, which were already delivered

 Click on  Next icon

Payment history: In this screen system shows the payment history of the particular customer for credit sales.

NOTE: Pre u2013 requisite in XD01: In company code data of the customer master in payment transaction tab

 Check payment history record

 Save and Exit

Define credit limit check by sales document type: Transaction code: OVAK

Path:

 IMG

 Sales and Distribution

 Basic functions

 Credit management/Risk management

 Credit management

 Assign sales documents and delivery documents

 Credit limit check for order types

 Choose sales document type OR

Assign Check credit [D] = Credit management: Automatic credit control

Credit group [01] = Credit group for sales order

 Save and Exit

Define credit limit check by delivery order: Transaction code: OVAD

Path:

 IMG

 Sales and Distribution

 Basic functions

 Credit management/Risk management

 Credit management

 Assign sales documents and delivery documents

 Credit limit check for delivery types

 Choose delivery document type LF from position button

 Assign delivery credit group [02] = Credit for delivery

Goods issue credit group [03] = Credit group for goods issue

 Save and Exit

Define credit limit check by item category: Transaction code: OVA7

Path:

 IMG

 Sales and Distribution

 Basic functions

 Credit management/Risk management

 Credit management/Risk management settings

 Determine active receivables per item category

 Choose item category TAN from position button

 Check credit active

 Save and Exit

Define credit groups: Transaction code: OVA6

We can define credit groups so as to group together different business transactions in the same manner to carryout

credit check.

NOTE: Use standard credit groups: 01 = Credit group for sales order

02 = Credit group for delivery

03 = Credit group for goods issue (PGI)

Path:

 IMG

 Sales and Distribution

 Basic functions

 Credit management/Risk management

 Credit management

 Define credit groups

 Go to new entries

 Define our credit groups

 Save and Exit

Define Automatic credit control: Transaction code: OVA8

Here we define whether system has to carryout Dynamic or Static.

Path:

 IMG

 Sales and Distribution

 Basic functions

 Credit management/Risk management

 Credit management

 Define automatic credit control

 Go to new entries

 Specify our credit control area, risk category and credit group

Document controlling

 Item check: It indicates that system carries out credit check not only when you save the document but also

when we enter single item or header data. System generates warning message only for first item.

Credit limit seasonal factor

% [] = Seasonal factor in %: It specifies percentage tolerance limit up to which a customers credit limit may be

temporarily extended or reduced.

Ex: Specify 5% with a u201Cminusu201D. If customeru2019s credit limit is 10,000/- then his limit is going to be reduced by 500/-

(5%) (It becomes 9,500/).

 Minus: It controls whether the credit limit may be increased or reduced by the specified percentage rate.

If you check it the percentage rate is going to be decreased.

From [] and To []: In this field we can specify the periods for season factors.

Checks

Here we define whether the system has to carryout static, dynamic or on maximum document value also.

 Check by giving different values in above fields.

 Check by giving maximum document value and without maximum document value.

[] Static: It indicates whether system has to carryout static credit check.

[] Reaction [A] = Warning: Specifying the reaction of ht system when system carries out the credit check.

 Status/Block: System sets the credit status after carrying credit check.

[] Open orders: It takes the open order value.

[] Open deliveries: It takes the open deliveries value.

[] Dynamic: It indicates whether system has to carryout dynamic credit check.

Reaction [A] = warning

Check Status/Block

Horizon [1] [M] one month

[] Document value: It indicates whether system has to carryout credit check based on the document value.

 Specify the Reaction, Status/Block and Maximum document value [ ]

It specifies the maximum document value for credit check based on the value of a sales order or delivery.

Use: It will be useful for new customers, for whom credit limits have not yet been established. That credit check

can be triggered by the risk category that we define especially for new customers.

[] Critical fields: It specifies whether system has to carryout credit check against critical fields (fixed value dates).

If you check this field the system checks whether critical fields have been changed.

Ex: Payment terms

Additional value dates

Fixed value dates

 Specify the Reaction and Status/Block

NOTE: It is only useful for sales documents.

[] Next review date: It specifies whether system has to carryout credit check against next customer review date.

Use: The next credit review date is stored in the credit data in the customer master record.

When you process a document the next credit review date must not be beyond the current date.

NOTE: We can specify the time buffer for this type of credit check in the next field, and we can specify number of

days that are added to the next credit review date.

 Specify the Reaction, Status/Block, and Number of days []

Open items: It specifies whether system has to carryout credit check based on the over due of open items.

Use: This type of credit check works in conjunction with two fields.

(A) Maximum percentage of over due items in open items.

(B) Number of days, which the open items are over due.

 Specify the Reaction, Status/Block, Maximum open item % [] and Number of days for considering open

items [ ]

[] Oldest open item: It specifies whether system has to carryout credit check based on the age of the oldest open

item.

Use: The oldest open item must not be older than the number of days specified.

If you do not want to deliver to the customer even, when one invoice is over due.

 Check the Oldest open item

 Specify 1 in the field u201CDays oldest [ ]u201D (It is number of days that are allowed for overdue of payment

terms).

Use of this kind of check: If the user attempts to alter the order quantity of the released sales document that was

previously blocked, it would be re u2013 blocked again by the system.

 Specify Reaction, Status/Block

[] Highest dunning level: It specifies whether system has to carryout credit check against highest dunning level

allowed.

Use: It specifies the highest dunning level that we want to use in the next field. The dunning process is recorded in

the customer master credit record.

The highest dunning level exceeds during order or delivery level this credit check can be carried out

 Specify the Reaction, Status/Blocked, and Highest dunning level [ ]

[ ] User 1

[ ] User 2

[ ] User 3

This field is inactive in the standard system, but can be used for credit check that we defined.

 Save and Exit

NOTE: In VOV8 of OR check credit limit field must be [D] = Automatic

System carryout automatic credit check based on the credit control area, risk category and credit group.

Regards,

Siva

Lakshmipathi
Active Contributor
0 Kudos

Please dont copy paste from other links; instead provide the link thanks G. Lakshmipathi

former_member365422
Contributor
0 Kudos

Dear Gaikwad,

Can you please elaborate little more. Like in your scenario did system allowed to create sales order, delivery and invoice OR you tested only at time of invoice.

FYI

Credit check can be configured at Sales order, Delivery and PGI level, and not at time of billing.

If sales order and delivery and PGI is cleared from credit check then at billing it doesnt checks again assuming the value will not be changed manually in billing.

If you are changing the value manually in billing document then system will not stop you for credit since no credit check happens, Ideally it is not recommended to change value in billing. If you want to restrict price changes in billing, take help of Abaper write a requirement and assign it pricing procedure and restrict it or also you can refer to OSS note 105621

Regards

Mayank