Credit management with respect to payment terms

[Former Member]

I want to configure credit mangement for my customers.The business goes like this if the credit limit limit of my customer is Rs10,00,000/-,if he is invoiced for Rs 1,00,000/- and there are no other open items.And if the payment term is 15 days.After 16 days if customer have not cleared his due of Rs 1 lakh,the system should allow the customer to book any order.Pls tell me how to configure it

[kalyan_mokirala]

Hi Mani,

As per my understandng of the issue, you need to have your own rule of defining your check based on the payment terms. Use any of the following user exits of credit to define your rule of credit check based on payment terms.

u2022 LVKMPTZZ

u2022 LVKMPFZ1: USER_CREDIT_CHECK1

u2022 LVKMPFZ2: USER_CREDIT_CHECK2

u2022 LVKMPFZ3: USER_CREDIT_CHECK3

I am sugesting this because different customers can have different payment terms and as per my best understanding you need to use user exit in this regard.

Secondly I suggest to have multi level credit check. You can have a warning at order level but have an error message at delivery and/ or goods issue level (You can have credit check done at order , delivery and goods issue level). This will facilitate the creation of orders for the customer though he had exceeded the credit but if you have reaction as error at delivery level for example,then order cannot be delivered and you can have complete control.

Check if this can help you in fixing the issue.

[Former Member]

Sorry, the system should not allow to book order if the payment term exceeds,unless that particular invoice is cleared ,system should not allow booking order.

[jignesh_mehta3]

I believe you requirement can be fulfilled by Standard Settings.

In OVA8, under Checks, there is a Box for OldestOpenItem. Tick mark that Box & maintain Reaction as D. Also put a Tick mark in Status/Block Box.

Now, in Days oldestItem maintain "0".

This is make sure that as soon as Customer has not paid for any previous Invoice which are due for payment, system will set a Credit Block in New Order. This is happen even if the Customer has credit limit available.

Hope this helps,

Thanks,

Jignesh Mehta

[former_member209761]

Dear Pradeep,

No need to use my previous thread if the system should allow the customer to book any order as Madhu pointed out.

System will allow as if wont consider the payment term in individual billing documents seperately.

But if there is only one payment term and only say due date is 1 month for all the billing documents, then use oldest open item in ova8 and enter 30 as no of days.

Anyways please make your query clear as madhu pointed out.

Thanks & Regards,

Hegal K Charles

[Former Member]

Hi

Is your query right? You have said that "system SHOULD ALLOW the customer to create any order".

In this case since the credit limit is 10,00,000 and he is liable for only 1,00,000 the system WILL ALLOW to create order for the customer.

Regards

Madhu

[former_member209761]

Dear Pradeep Mani,

In OVA8, you have to select both DYNAMIC and OLDEST OPEN ITEM with the necessary reaction.

Againt OLDEST OPEN ITEM maintain days 0

Now rest is ABAP work.

I hope you will have your payment term in the billing documents.

The same will be coming in the FBL5N as DUE DATE. You can get the Due date in BSEG table.

Now run a sales cycle with your ABAPer. Try to create a scenario where the oldest open item ERROR MESSAGE will trigger.

During the sales cycle, the message due to credit limit will come first and after that the message due to oldest open item will come.

Ask your ABAPer to write a code before the message due to oldest open item. (the message due to oldest open will come as we have maintained 0 days , if there is any pending invoice to be cleared.)

Logic : Fetch the KUNNR from VBAK and put it in BSEG table.

List all the open items with there DUE DATE .

From BSEG you will get the DUE DATES.

You can write an addition validation in the code to check only RV if you are going to consider only invoice and

not DI,KG,DG etc

If any of the due date is greater than system date, trigger the message due to OLDEST OPEN ITEM.

Else bypass the oldest open item message.

It will work .

I have done it with this logic. Obviously it was the effort of ABAPer that did the work.

Thanks & Regards,

Hegal K Charles