Credit Value Cumulation

[Former Member]

Hi All,

I have a doubt about credit value cumulation in Sales documents.

I know that, credit value is captured based on the Subtotal A assigned to a particular value line in a Pricing procedure.

The credit value is cumulated based on the value maintained under Update button in Credit control area.

But recently I read somewhere like credit value cumulation technique is different for Simple credit management and Automatic credit management.

Is that true. Could you please clarify my doubt.

Regards,

Raja Durai

[moazzam_ali · Accepted solution]

Hi

From credit value you means credit exposure of customer. Right?

I have never read or seen somewhere that cumulation of credit value is different in simple and automatic credit management. In automatic credit management there are some other values as well which system considers while credit check. These are open sales orders, deliveries and billing document and these can be different based on our settings. As far as cumulative credit value is concerened it is cumulated based on A which you have already told in your question.

Thank$

[Former Member · Accepted solution]

Hi Mozzam,

Thanks for the response.

I mentioned about open Sales orders, Deliveries and Invoices only.

Some presentation says, Simple credit management considers only Open Sales orders, open Invoices and Open Items. But Automatic credit management considers Open Sales, Open Deliveries, Open Invoices and Open Items.

But as for as I know, it is controlled by Update button in Credit control area only.

Is Simple and Automatic credit management has any other control apart from Update button to cumulate Open Sales orders, open Deliveries, open Invoices and open Items?

Regards,

Raja Durai

[moazzam_ali · Accepted solution]

Hi

In below document check Yanamadala's response. It is answer to all your questions.

Automatic credit control and simple credit control | SCN

Thank$

[Former Member · Accepted solution]

Hi Mozzam,

Thanks for the link Mozzam.

Actually link mentioned by you is the source of my confusion.

Please find the text below copied in the given link. I have mentioned my doubts wherever possible.

SIMPLE CREDIT CHECK : Tr.Code - FD32

It Considers the Doc.Value + Open Items.

My Doubt: As per the above point. Simple credit check considers Document Value +
Open Items. Does it mean that, it is not controlled through Update button in
Credit control area.

If not, how does Simple credit management considers only Document Value + Open
Items?

1. Doc.Value : Sales Order Has been saved but not delivered

Open Item : Sales Order has been saved , Delivered, Billed & Transfered
to FI, but not received the payment from the customer.

Eg: Customer Credit Limit is Rs.1,00,000/-

Suppose Doc.Value + Open Item Value is Rs.1,10,000/

AUTOMATIC CREDIT CHECK : Give
extra credit facilities to the particular customer.

STATIC CREDIT LIMIT DETERMINATION:Checking Group + Risk Catageory + Credit Control Area.

Static Credit Check it checks all these doc value & check with the credit limit

1) Open Doc.Value / Sales Order Value : Which is save but not delievered

2) Open Delivery Doc.Value : Which is delivered but not billed

3) Open Billing Doc.Value : Which is billed but not posted to FI

4) Open Item : Which is transfered to FI but not received from the customer.

DYNAMIC CREDIT CHECK :

1) Open Doc

2) Open Delivery

3) Open Billing

4) Open Items

5) Horizon Period = Eg.3Months

My Doubt: As per the above point. Static Credit and Dynamic credit check considers DocumentValue + Open Delivery + Open Billing + Open Items. Does it mean that, it is not controlled through Update button in Credit control area.

Kindly clarify.

Regards,

Raja Durai

[moazzam_ali · Accepted solution]

Hi

Your understanding is not correct.

In simple credit check update field in credit control area doesn't work. As already told in example that simple credit check just takes open items from financials and order value which you are creating. It doesn't take other orders deliveries or billing documents so this update button is useless here.

It works in automatic credit check. In both dynamic and static automatic credit checks this update field works. This is because in automatic credit check system considers open orders, deliveries and billing documents this open value updation in Sales Value field in FD33 is controlled through this field.

Hope this is clear to yo you now.

Thank$

[Former Member · Accepted solution]

Hi Mozzam,

Thanks for the response.

I understood now. But it is hard to digest the truth that, Update button from Credit control area is not considered for Simple credit management.

Because, I always under the impression that Open sales document value and Open items are controlled through Update button.

Thanks for clearing the doubt I had for long.

Regards,

Raja Durai