Increasing the credit limit of 25% only for one month (during festive season)

[Former Member]

Hi,

In Credit managemnt, If i want to increase the Credit limit to the customer by 25% for a certain period and for the rest of the period it should remain same. i checked in FD32 but i didn't find any feilds related to my issue. P

[Former Member · Accepted solution]

Hi Krishna,

I will suggest in such it is better to make a sperate risk category with "Next Review Date". Keep the system response "Error". You may assign this category as and when required on any customer depending on business need,

Put the Next Review date as end date of yr one month period so that system will force you to beyond that date to either increase the date further or increase Credit limit.

Rd's

Sanjay

[Former Member · Accepted solution]

Thanks sanjay..

You meant to say that if we select the next review date, system will suggest to change/increase credit limit for the next festive season for that customer. it works like a reminder. isn't it???

[sridhar_v · Accepted solution]

Hello Sanjay,

Please do not get confused. We as such make separate risk categories at

spro-img-financial accounting-ar ap -Credit management - credit control account -define risk categories.

why we create this here ?

to assign in define credit control area.

why do we need to assign risk categories in credit control area ?

it is meant for newly created customers.

so how and why are you suggesting to create separate risk categories, and what do you mean by that ? Please suggest.

Regards,

Sridhar

[sridhar_v · Accepted solution]

Next review date means

Next internal review

Date of the next internal review of the customer's credit limit.

means when to change , or suppose he is high risk, and paying all his payment on time, so we can increase his credit limit.

Regards,

Sridhar

[Former Member · Accepted solution]

Dear Sridhar,

The main objective is to increase of limit plus a control on time. My suggestion is on control of period.

In any case user has to define the increased limit manually via FD32.( Since the requirement is for some specfic customers) Putting of review date with an error check is to ensure that enchanced limit may not allowed to enjoy beyond decided period.

Since the requirement is seasonsal ..post a certain period the newly created risk category can be removed on old (or as the case may be) may be assigned with reorganization of credit control Area.

I hope I m able to clear .Please do revert if any clarification is required

Rd's

Sanjay

[Former Member · Accepted solution]

Hi Sridhar,

Thanks for the detailed briefing of Next review date.

And for creating new Risk category..

Suppose I've ten customers in one risk category (001) and among these ten customers if  want to increase credit limit to only one customer for a festive season. As u said if i do changes in OVA8 by giving risk category (001). The hike of credit limit will be applicable automatically for all the ten ppl in the risk category group (001) which is against to our requirement to increase credit limit to only one customer. So for that reason I feel we need to create a separate risk category for that one customer and wat ever the hike in CL we give in oVA8 will be applicable to that particalar customer/customers in that risk category...

Pls correct me if i'm wrong

[jignesh_mehta3 · Accepted solution]

Hello Krishna,

If you want to increase Credit limit by 25% only for a Single Customer for a particular Season, then it is best to change the same manually.

Creating new Risk Category for a single Customer does not make sense. Say what will you do in future if for another Customer for want to increase Credit LImit by 30%? Create another new Rsik Category? That is not practical.

Just  change the LImit Manually for the particular Customer.

But if your client insist to maintain the Seasonal Factor for one Customer in OVA8, then yes, your understanding is correct: You will have to create a new Risk Category & assign the same to Customer in FD32. Then maintain Seasonal Factor in OVA8.

Thanks,

Jignesh Mehta

[kalyan_mokirala]

Hi Krishna Mohan,

I accept Jignesh's suggestion to some extent (change the Limit Manually for the particular Customer). But if this is a full time requirement you can go with an enhancement in credit management as more customers may demand the same enhanced credit or company wants to extend this for more customers. I suggest you to have a Z-table created with the fields customer number, from date, to date and the seasonal factor percentage. In the userexit suggest developer to develop a code based on the fields of the table and customer credit limit of credit master.

This will be a permanent solution and you can add as many customers and validity periods and percentages in the table

Hope this helps.  

[Former Member]

Hi Tilak,

Could you pls clarify me in which screen of credit master we create the Z-table, is that in the FD32 screen?

[sridhar_v]

Hello Krishna,

You can increase or decrease the credit limit for the customer at OVA8 as I have attached the screen shot. if you want to increase his credit limit then do not tick in the box, let it be blank, but if you want to reduce then tick it.

Thanks,

Sridhar

[Former Member]

Sridhar, if i want to increase credit limit to only one particular customer,, then do I need to create a separate risk category for that customer and then i have to maintain in OVA8???

[sridhar_v]

krishna,

You can do change credit limits at FD32 for the customer which you enter at  header level.

I know you would have the confusion about the tab newly created customer's credit limit, i.e for the the customers who are just been created in the system will be put into that credit limit.

As the newly created customers have no payment history or we suppose dont know what kind of customer he is , in such case we generally (at least I personally) put such customers in High Risk category customers, and to such high risk category we give very less credit limit.

So without any confusion and without any change in the newly created customer's credit limit, you can freely change the other credit limits for any individual customer as you wish.

Regards,

Sridhar.

[Former Member]

sridhar,,

My doubt was to increase credit limit by 25% to one particular customer during festive season..

in OVA8, we can increase the limit by checking the feilds and mentioning the periods.

It's pretty clear but if we do so, automatically other customers who are also there in the same risk category will get the hike in credit limit right???

[sridhar_v]

Oh sorry, yes I got it.

If you tick it, the percentage what ever you mention will be reduced. So if you want your customer to get more buying capacity, then do not tick .

Tick means you are saying yes to negative value.

Regards,

Sridhar.