How to set Credit Limit at Company Code Level

[Former Member]

Hi All SAP Guys,

     How to set Credit Limit at Company Code Level. Business requirement is Need to enable Credit Management at Company code Level in addition to the control at individual customer level.

Current Business Process is as :

1. Present System are using Dynamic Credit check at Delivery Level by customer level.

2. Now business is asking to put contorl at each customer wise as well as company code level.

   Example : We have 10 Customers each customer we are giving credit limt as Rs.10000 (total of 10 customers = Rs.1,00,000). Even if the each customer Rs. 10000 exceeds also we can able release manully by finance pepole with approval of using t.code (VKM1 or VKM3) after that normal process (deliver and Invoice).

For this now business heads asking to put one Credit Limit at Company Code Level. Example : Considering the above screnario if we put credit limit at whole company for Rs.2,00,000). this time while raising the sales order system is not allowing to save the sales order and to provide an error message. I hope understand my requirement.

    How to meet this requirement.

Thanks and Regards,

Chandra Mouli

[Former Member · Accepted solution]

Dear All Thanx for your inputs.

we have implemented through Customization set of Credit Limit at Company code level.

1) We have created on YTABLE to maintain the company level credit Limit

2) Used : Enhanced Development Object:   SAPMF02C   & Include Program : MF02CFC0

Company Credit Limit will maintain in YTABLE (given Y T.Code: YCV14) here Finance Head Will maintain the Credit Limit at company code level

we write ABAP Program for fetching the data like : fetch the data from KNKK for all the customers and add those values and compare with credit limit maintained in Y Table and it is greater than then system will provide the error message like  Company code credit limit will exceeds these much value. PLs find below is the prgoram which we wrriten.

SELECT  kunnr

         kkber

         klimk  FROM knkk INTO TABLE it_knkk

         WHERE  kkber EQ 'PPBC'.

IF knkk-kunnr IS NOT INITIAL.

   DELETE it_knkk WHERE kunnr EQ knkk-kunnr.

ENDIF.

CLEAR :is_knkk,w_klimk.

LOOP AT it_knkk INTO is_knkk.

   w_klimk =  w_klimk + is_knkk-klimk.

   CLEAR  is_knkk.

ENDLOOP.

w_klimk = w_klimk + knkk-klimk.

CLEAR w_credit.

SELECT SINGLE credit_limit FROM ysd_credit  INTO w_credit

                           WHERE kkber EQ 'PPBC'.

IF sy-subrc EQ 0.

   IF w_credit is initial.

   MESSAGE  'Maintain Comp.Code Credit limit in T.code "YCV14"'  TYPE 'A'.

   ENDIF.

   IF  w_klimk GT w_credit.

     CLEAR w_exceed.

     w_exceed = w_klimk - w_credit.

     MESSAGE a000(8z) WITH  'Company Credit Limit Exceeded by' ' '  w_exceed.

   ENDIF.

[former_member182378]

Chandra,

To understand your requirement,

Set Rs.2,00,000 as a credit limit for Company code A

What does the above mean?

E.g. The system should add the values of sales orders created for Company code A, for all customers?

As you know the functionality of not allowing to save a sales order, giving error message is part of the setup done in OVA8.

[Former Member]

Hi TW

My rerquirement is need to calculate the credit limit for all the customers.

So Where I need to maintain the company's credit limit i.e., in which T.Code. try to correct if iam asking wrong question.

Thanx and regards

chandramouli.a

[former_member182378]

Chandra,

This requirement goes against the principle on which credit management is built!

From my understanding, the credit management functionality works to assess (and then take appropriate actions) a Payer (in common language a customer; in other words to whom the company is selling goods and services)

We are not selling to a company code.

Thus in Standard SAP the solution for this requirement is not possible.

I would suggest not to try and meet this requirement with the credit management functionality.

Ask your client, the objective behind this requirement.

Then analyze does it add value?

If yes, then, maybe with some report; by which the user can find out the credit details, at an aggregated level for ALL customers in a company code.

[former_member184065]

Dear,

My r requirement is need to calculate the credit limit for all the customers.

So Where I need to maintain the company's credit limit i.e., in which T.Code. try to correct if I am asking wrong question.

Your requirement is very nice to hear to me .But in this case , I have some doubts on this .Please answer all Queries .

1.If you set up credit Limit to Company Code Level ,It means all ,it will be applicable to all Customers what ever that Credit Limit Amount .So , in this case , How each and every customer can know / findout how much Credit Limit they are having ?

2. For example , Under that Company Code having 10 Customers ,you have given 10000 rs Credit Limit to that Company Code then How that amount will be distributed to all customers ?

3. What about all rest of 9 customers when One customer used total Credit Limit ?

Note : I am saying anything wrong please let me know .I thought ,it would not good way to configure on Company Code Level .

Thanks,

Naren

[former_member182378]

Narendra,

If you read the OP's initial post, the requirement is:

Business requirement is Need to enable Credit Management at Company code Level in addition to the control at individual customer level.

Thus at both levels - company code and customer levels.

[Former Member]

Hi

You can create your own credit control area through t code ob45 , you can maintain the Credit limit 2,00,000 over there , and assign the same CC area to your co code through the  T code ob38.

Before applying the same please make sure that your credit management is centralized, you can define one credit control area for all of your company codes.If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

If any more clarification please let me know

Thanks

Labeeb

[Shiva_Ram]

First of all this is NOT SD question. This should be handled/advised by FI specialist. So I recommend posting this in FI forum.

From my analysis, company codes are assigned to credit control areas. So if the business demands maintaining of credit limit per company code, then it looks one credit control area needs to be created per one company code. Not a good design.

So let the ball rolls on FI court and let them play the game.

Regards,

[Former Member]

Hi Shiva Ram,

Thanks for your reply.

How we can tell this is purely FI. As you exatly correct all credit control areas are sassigned to company code only. my business process. only one company code and one credit control area, one sales org.

     How we can set credit limt at company code level. In that we need to consider the individual customer level also that is Dynamic credit limt check aprt from this we need to check company code level also.

Regards

chandra mouli.a

[Former Member]

Hi Chandra Mouli,

If your intension is block the Sales order at company level then

you can provide one UDT for Comany Total Credit Limit and Check with sum of Customer Credit Limit

If it get exceed then you can block through notification.

Regards,

Tausif

[siva_vasireddy2]

Hi,

   please see whether you can Update the Value while Creating a Credit control area under Enterprise structure.you can give Credit limit at credit control area which is inturn assigned to company code.

or

Use the Following User Exits

LVKMPTZZ

LVKMPFZ1: USER_CREDIT_CHECK1

LVKMPFZ2: USER_CREDIT_CHECK2

LVKMPFZ3: USER_CREDIT_CHECK3

[Former Member]

Hi Siva,

As you specifed the user exits. already we used for one business for this exit : LVKMPFZ1: USER_CREDIT_CHECK1. that time while raising the Sales order particular customer if exceeds the credit limit that we built for separate logic i.e., overdues more than 120 days that overdue below 10 % SO has to raise it is working fine.

My requirement is If we use this exit where we need to set the company code credit limt. I hope you understand my requriement.

As per my knowledge if I use this exit CHECK1. In YTABLE  need to maintain company code credit limt and cumulate the all the open value of crdit per customer and compare with company credit limt then that need to trigger at the sales order i.e., save.

Is there any way to crack this requirement.

Kind Regards,

Chandra Mouli.A

[moazzam_ali]

Dear

What is your organizational structure? At what level you have maintained credit control areas? Mostly credit control area is maintained at company code level. Can you share your organizational structure for this? After that we will be in position to advice you something.

Thank$