Automatic credit check

[Former Member]

Hi Friends,

Can any one explain automatic credit check.

Waiting for reply

kishore

[Former Member · Accepted solution]

Hi Kishore,

Automatic credit check basicaly works on Credit control area,Risk Category and Credit group.Define Credit Control Area and Risk Categories by FI Consultant.

Assign the Credit Control Area to Sales Area.

Define the Credit Group for example 01-Credit Grp for Sales order

Assign Sales Doct to Delivary Doct(OVAK).Here assign the credit group and Check Credit as D-Automatic Credit Check.

Maintain Auto credit check(OVA8)

Maintain Credit as Static or Dynamic.(Either select Static or Dynamic)

Maintain Customer Credit record in FD32.

As Total Credit Limit,Individual Credit limit and Credit limit.

Note:Assign the risk category in Customer credit record.

Its needful for u just give so points.

Regards

Vikram.M

[Former Member]

Hi Kishore,

The <b>automatic credit check</b> can target certain aspects during a check and run at different times during order processing. In this menu option, you can define your own credit checks to correspond to your requirements in the area of Credit Management.

You can determine an automatic credit check for any combination of the following:

<b>Credit control area</b>

<b>Risk class</b> (classifying attribute for your customers from the viewpoint of <b>credit risk which is maintained in FI</b> Customizing)

<b>Credit group</b>

Example

You can define a credit check for a certain credit control area and for all sales orders in which the customer has risk class 2 (RK2).

It is possible to define a system response for each credit check (for example, warning message). In the case of a warning message, a block can be set in the credit status of a document.

When you define automatic credit checks, you can also freely define requirements which cause a document or the forwarding of the material requirements to MRP to be blocked. This is described in the IMG section "Make default settings for Credit Management".

If you define your own credit checks, proceed as follows:

specify type of check

specify scope of check

specify system response to check

allocate credit control areas

define and allocate risk classes if necessary

allocate credit group

assign description to the credit check

<b>Types of credit check</b>

The following types of credit checks can be carried out:

<b>Static credit limit check</b>

Credit allocation depends on the total value of open orders, deliveries, billing documents and open items.

<b>Dynamic credit limit check</b>

The dynamic check includes both a static part which checks all open items, deliveries and billing documents and a dynamic part which checks all outstanding order values, that is, all orders not yet delivered or partially delivered. The value resulting from the checks is accumulated up to the shipping date in the information structure "S066" in freely definable time units or periods (day, week, month). This information structure is entered in Logistics Controlling and described in the section "Carry out default settings for credit management" under Basic functions.

To define the credit check, you specify a certain number of relevant periods from which a date in the future can be calculated (for example, 10 days or 2 months depending on the selected period). This ensures that sales orders which lie further in the future are not used to determine the credit exposure.

The total of the static and dynamic part of the check must not exceed the granted credit limit.

<b>Credit check on the basis of the maximum document value</b>

The sales order value or the value of goods to be delivered must not exceed a certain value defined for the credit check. The value is stored in the currency of the credit control area. In particular, this check is useful if the credit limit of new customers has not yet been specified. This check can be accessed explicitly by a risk class reserved for new customers.

<b>Credit check when changing critical fields</b>

The credit check is started when changes are made to credit-relevant document fields so that they differ from the default values proposed from the customer master record (terms of payment, value days and fixed value date).

<b>Credit check at the time of the next internal check</b>

The credit check is started automatically on a certain date. All sales orders entered up to this time are regarded as not critical.

<b>Credit check on the basis of overdue open items</b>

The ratio between open items, which are overdue by more than a certain number of days, and the customer balance must not exceed a certain percentage.

<b>Credit check on the basis of the oldest open items</b>

The oldest open item may only be a certain number of days overdue.

<b>Credit check against maximum allowed dunning levels</b>

The dunning level of the customer may only assume a certain maximum value.

<b>Customer-specific credit checks</b>

If you require further checks to those defined in the standard system, you can define them in the corresponding user exits (LVKMPTZZ and LVKMPFZ1).

<b>Requirements</b>

In the No Check field, you can enter the number of a requirement with which you can control when credit checks are not carried out. You can deactivate some or all checks. This allows fine tuning on an individual basis for defining credit-relevant transactions and when credit checks do not need to be carried out.

For example, you could deactivate the credit check for the following sets of circumstances:

As long as a document contains no items, no check will be carried out.

No check will be carried out during order creation, but rather 14 days before delivery using a background program.

A check should be made to see whether the payment guarantee form has changed (letter of credit, payment card). If the payment guarantee form has not changed and if the old net value does not exceed the new net value, then no credit check is carried out.

You can also reset the credit document status. The following example demonstrates when this is necessary:

You are working with risk management and have specified payment card as the payment guarantee form in the payment guarantee procedure. You create a sales order but do not enter a payment card and the credit check is carried out. You then change the sales order and enter a credit card. Since the credit card is a secure means of payment usually for an unlimited amount, you do not want to carry out another check. You can now use a requirement to have the system bypass all checks and reset the status.

Requirements are stored as routines. For further information on routines, see the IMG of SD under Routines. The two following example routines are supplied in the standard system. You can display and edit them using transaction VOFM:

1 Order

2 Delivery

You can copy and change these routines according to your own requirements. The routines contain different example scenarios in which credit checks would not be carried out.

Caution:

Make sure that the coding in your routines is consistent with the coding in risk management and the import and export parameters for the example routines supplied with the standard system.

Check financial accounting/old A/R summary

In distributed systems (central financial accounting, decentral sales and distribution), the FI data from the central system is needed for the credit check (see also: Release note Credit management in distributed systems). At the payer level or credit account level, for example, the following data would be needed for a check: Total of open items, detail information on open items (i.e. oldest open item), maximum dunning level, etc. Using the A/R summary, the FI data in the central system can be collected and then transmitted to the decentral SD system using the distribution function. The data is then evaluated in the SD system. The A/R summary represents compressed FI information for the credit check.

In check financial accounting/ old A/R summary, you can specify the allowed change rate for the A/R summary using allowed days and allowed hours. This is where you define how old the A/R summary can be for a check to be carried out. If the age rate for the A/R summary is exceeded during a credit check, the document is blocked.

Tip:

If you have set up credit management so that credit checks are only carried out for certain, comparatively rare orders, then you can enter an age rate of 0. You should also activate RFC in FI Customizing for credit management (preparatory configurations). This ensures that the A/R summary is always determined if a credit check is to be carried out. Because credit checks are carried out relatively rarely in this case, system performance will not be significantly influenced.

Note:

Fields allowed days and allowed hours are only available for entry if you have entered an X in field Read A/R summary in FI Customizing. The path is:Accounts Receivable and Accounts > Credit Management > Credit Control Account > Make basic settings for credit management.

Actions

1. Enter a combination of credit control area, risk class and credit group as well as a description for the credit check you want to define.

2. On the detail screen of credit control, specify the type of checks required (for example, static, dynamic), the scope of the check as well as the system response according to your requirements.

3. If necessary, enter the general data for the credit check.

Hope this information helps. Please reward if useful.

Thanks & Regards

Sadhu Kishore

[Former Member]

checking the outstanding of the Customer based on the Credit limit of the customer.

Regards

Prabhu

[Former Member]

Hi kishore

pl go thr below links:

http://sap-img.com/sap-sd/credit-management.htm

http://academic.uofs.edu/faculty/gramborw/sap/crm.htm

http://www.sap-basis-abap.com/sapsd012.htm

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/SDBFCM/SDBFCM.pdf

http://sap-img.com/sap-sd/credit-management.htm

http://www.sap-img.com/sap-sd/credit-management.htm

http://help.sap.com/saphelp_47x200/helpdata/en/93/74382d546011d1a7020000e829fd11/frameset.htm

http://sap-img.com/sd025.htm

http://sap-img.com/sap-sd/mrp-block.htm

http://sap-img.com/sap-sd/credit-management.htm

REWARD IF IT HELPS

Regards

Srini

[Former Member]

for automatic credit check you can refer the following link

<a href="http://help.sap.com/saphelp_470/helpdata/en/93/743813546011d1a7020000e829fd11/content.htm">http://help.sap.com/saphelp_470/helpdata/en/93/743813546011d1a7020000e829fd11/content.htm</a>

In order to do this you have to configure the credit check to be as warning or error message in OVAK based on the order type