Credit Management

[Former Member]

Hi Experts,

I have a requirement where Credit Management is to be activated. But here there will be no credit limit. The credit balance of customer should act as the credit limit for that particular customer. It will vary for all customers.

At the time of SO creation system should compare the sales order value with customer account balance. If it is smaller than or equal to the customer account balance then system will allow to create SO otherwise not.

Example- If a customer's credit balance(advance payment) is 1000000 and SO value is 600000... then system should allow it to be created.

                    If SO value is 1000001 then SO should be blocked.

Hence there will be ZERO credit limit set in the system and Customer's advance payment i.e Customer account balance will be the credit limit for him.

Regards,

AKN

[prasanna_kumar4 · Accepted solution]

HI

You need to maintain the credit limit with ZERO value

For your understanding check the below link

http://scn.sap.com/thread/2132105

Regards,

Prasanna

[Former Member · Accepted solution]

Apart from this you can make required settings in OVA8 , Pricing Sub total - A in the pricing procedure (v/08) , credit limit check by item catg in OVA7 and check by sales doc type in OVAK.

Thanks

Rajesh 

[Former Member · Accepted solution]

Hi

Its fine if I give 0 credit limit to the customer. But now the customers are having certain credit balance. So should I give credit limit equal to the credit balance of customers and later on change it to 0.

Please help

[prasanna_kumar4 · Accepted solution]

HI

should I give credit limit equal to the credit balance of customers

As per my knowledge don't go because every time you need to change the Credit limit ,

better to go ahead with zero if customer has the balance you can utilize later

If i am wrong correct me

Regards,

Prasanna

[jignesh_mehta3]

Hello Ashish,

In your case you just need to set Credit Limit of the Customer as Rs. 1 & system will do the needful.

Just check the link suggested by Prasanna above, where I have explained in detail how the system works.

For Customer who are currently have credit balance also you will have to set the Credit LImit as Re. 1. This their case the Credit LImit will be Credit Lilmit + Advance Payment. Which means if a Customer has Credit Balance of Rs. 1000 & Advance Payment of Rs. 10,000 then the Total Credit LImit will be Rs. 11,000. System will do this automatically & you will have to just set a Credit LImit as Re. 1.

Thanks,

Jignesh Mehta

[Former Member]

Hi Jignesh,

If I set credit limit as 1.

Will the calculation be like this,

Credit Limit  = Credit limit of Customer (Re 1) + Customer account Balance

[jignesh_mehta3]

Hello Ashish,

Yes, your understanding is correct.

if Credit Limit is Rs. 1, then Total Credit Limit will be calculated as Credit LImit Rs. 1 + Balance in Customer Account.

Now if the Customer Account Balance is Credit then system will allow creation of Sales Orders till that extent. But if there is debit balance in Customer Account, then system will automatically block the sales order.

I would suggest you just just try once in Development / Sandbox server & you will see the exact working.

Thanks,

Jignesh Mehta

[prasanna_kumar4]

HI

Yes if you maintain credit limit 1

If you maintain Credit limit Zero then it is Credit Limit of customer (0)+ Customer Account Balance

Regards,

Prasanna

[former_member183879]

Hi,

You can do it by a small development.

You can very well use credit management at SO level and prevent the SO creation if the credit limit is exceeded.

The only development you have to do is to move the Credit balance of the customer to the credit limit field of the customer. i.e. the credit balance of customer, will become the credit limit in the system and it will change dynamically based on the customer balance.

That means, for all customers who dont have credit balance, the credit limit will be either 0 or can be -ve too. For such customers, no SO creation can be created.