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Credit Control Authority

Former Member
0 Kudos

Hi experts;

     I'm FI consultant and I have activated the Credit Control Management following links on the Forum and it was pretty useful and effective. in addition my client had two extra requirements:

1. To set one more constrain to the Credit Limit to be based on Due date. this one I made it through the OVA8 through the OldestOpenItem field where I cannot make invoice for the customer if the oldest invoice is yet open and it exceeded the duration of DaysOldestItem number of days plus days in the payment terms.

2. They need to make Authority levels for such two constrains, in another words let's say that we have Customer (XYZ) with Credit Limit 50,000 USD and Payment terms 30 days and 5 days from oldest open item, then the customer reached the 50,000 USD limit or his last invoice is exceeded the due date plus 5 days of Oldest open Item which all will be 35 days, they need some one to be authorized or has the right to make invoice for such customer however he (customer) has reached the 50,000 USD limit or exceeded the 35 days.

That point number two which I do not know whether it is applicable on SAP or not and if it is applicable can someone kindly guide how to do it please.

Thanks in advance;

Kind regards;

Ahmad Mahmud;


Accepted Solutions (1)

Accepted Solutions (1)

jignesh_mehta3
Active Contributor
0 Kudos

Hello Ahmad,

From my understanding of your question, I think the point number 2 is very much SAP Standard and very much the heart of Credit Management Concept in SAP.

I mean if the Customer has exceeded his Credit Limit, by virtue of reaching Credit Limit of 50,000 USD or Oldest Open Item of 5 Days, or any other control you have set in Customizing system will block creation of Sales orders for such Customers (Provided you have set Error message in Customizing).

Now once the Sales order is blocked, there are two ways to release it:

1. Customer's Credit situation is changed, for example he pays 20,000 USD or

2. a Authorized person in your Company, generally Credit Manager, revives the situation and approves a particular Sales Orders. Once the Order is approved by Credit Manager, Delivery and Invoice can be processed, despite the fact that Customer has exceed his Credit limit.

Hope my understanding is as per your requirement.

Thanks,

Jignesh Mehta

Former Member
0 Kudos

Hi Jignesh;

     perfect

your understand is hitting my case 100%

yes I need one authorized person can override the Error message of any credit limit (as u said whatever amount or date or any else constrain).

So, can you please advice and guide how to perform such scenario ?

I do appreciate your help and cooperation.

Thanks in advance;

Ahmad Mahmud;

jignesh_mehta3
Active Contributor
0 Kudos

Hello Ahmad,

This is SAP Standard.

The Credit manager needs to Access T-Code - VKM3 or VKM4 to list the SD Documents that are Blocked due to Credit Check and release them for further processing.

Nobody else than Credit Manager (Authorized person and a back up approver) will have authorization to access T-Code VKM3 or VKM4.

For further information you will have to search online with VKM3 or VKM4 or read SAP Standard documentation on this.

Thanks,

Jignesh Mehta

Former Member
0 Kudos

Hi Jingnesh;

     that sounds good but how to release a blocked SD document where it is already has not been created because from the beginning whenever the system finds that the Credit limit is exceeded it gives an error and NO documents are saved in a BLOCK mode to be released later.

Can u please advice;

thanks in advance;

Kind regards;

jignesh_mehta3
Active Contributor
0 Kudos

Hello Ahmad,

Once again these are SAP Standard settings. Please have a look at available settings in Transaction Code OVA8.

Against each check (under Checks section) you have options for Reaction and Status / Block.

Thus in your case, for example against Oldest Open Item you need to select A or C in Reaction and put a Tick Mark in Status/Block Check Box.

This will ensure that user gets a warning message while creating / saving the document and document is saved but it is blocked.

Thanks,

Jignesh Mehta

Answers (0)