Payment term switch for pre-paid customer balance

[Former Member]

Dear Experts,

We have a client who has a group of customers who are required to pay for their orders in advance of any orders. The system will record the payment to ensure there is visibility to the available balance for the customer. We would denote the payment terms as pre-paid for those specific customers.

Sales orders are created one after the other and invoices get posted against the available balance. Looking at the payment terms for the customer, the Accounts Receivable team understands that the customer is pre-paid and does not charge the customer. We would like to automatically flip the payment term of the next sales order to Cash on Delivery(COD) the moment system finds that the sales order net price exceeds the available balance. we have thought thru various steps using enhancement but we are not able to keep the solution simple.

Can you suggest a simplest method by which we can get a working solution.

Thanks in advance

Suraj.

[od_manikandan]

Dear Suraj,

Customer is having credit balance and payment term in customer master is ADV - Advance

and once system net price goes beyond the payment term should be changed to COD - Cash on delivery.

As per SAP standard practice,

when a user creates a sales order system bring the payment term from CUSTOMER MASTER to sales order.

Make a enhancement while saving the sales order, if the CREDIT CHECK screen come like " static credit check SO exceeds by 100/- then program change the payment terms from ADV to COD only in that sales order.

And with that reference if you prepare invoice it will treated as CASH ON DELIVERY.

In future, if payment is received, and sales order is prepared it will have credit check exceed and payment terms will ADV only as per customer master.

Regards,

Mani

[Former Member]

Thanks Manikandan,

When you mentioned " if the CREDIT CHECK screen come like " static credit check SO exceeds by 100/-" how does the system get this message automatically in the background. we can also consider a manual option of flipping the payment terms to COD as well if we are able to put the sales order on delivery block due to the above mentioned message. Is this standard SAP?

Thanks

Suraj

[od_manikandan]

Dear Suraj,

Please check whether you Automatic credit check is implemented.

U can check credit limit in FD32 while creating sales order.

In credit check, Sales order Net value can check

Credit available : (Credit limit FD32) - receivables + Special liabil

and even if give credit, system can check whether any invoice got over due .

While making sales order system give the message credit limit exceeded by the difference value

You can decide whether to have Error or Warning message.

Regards,

Mani