Credit Management Scenario

[soumyadipta_das]

Hi Gurus, 

I am doing one Implementation and the requirement from my client is as below:

They want two level approval on credit check.

For example, suppose they are having 10 customers. Out of these 10, 5 customers having a credit limit of Rs. 2 lacs  and others having a credit limit of Rs 10 lacs. When any customer crosses the credit limit, upto 2 lacs credit limit approval would be done by Head of Sales (H.O.S.) and 10 lacs credit limit approval would be done by the C.E.O.

How can we implement this?

Please suggest.

Looking forward for your kind reply.

Message was edited by: G Lakshmipathi

Don't use the word "urgent" which is not encouraged in SCN.  Everybody has their own priority and you have to wait until somebody responds your query

Thanks in advance.

Soumya

[gopalkrishna_k]

Hi ,

We need to have a enhancement here.

Please create a Z - table , which will have credit control area , userid , email id , from amount  and to amount.

User id is example Manager etc.

Email id : manager email id.

From amount -- to amount -- 0 L - 10 L.

create a object status , being processed , approved , rejected.

Ask basis to give the authorization accordingly..

Once order is created the status will be being processed , to work flow will trigger with respect to the above table user emial id . from there he ( manager ) will approve or reject so the status will get update in the sales order.

Thanks

Gopalkrishna

[VeselinaPeykova]

Instead of Z-table it is possible to map the HR position to credit representative group for the respective credit control area in PP01 and use this assignment to trigger the workflow to the responsible agents. You probably do not need to create custom authorization objects, because the standard ones provided by SAP for credit management processing already have ACTVT for display and maintain.

[soumyadipta_das]

Hi Veselina,

For credit representative group, do I need to create any positions in HR? HR is being implemented also.

How can I use credit representative group as a selection criteria in VKM4?

Can you please explain.

[ravi_kumar100]

Hi,

In your case you maintain the 10 L Credit limit customers as High Risk Group and 2 L Credit limit customers as Medium risk.

Maintain the respective Head of Sales and CEO as Credit Representatives.

Do the configuration for triggering mail once an order is blocked due to credit limit to the Credit Representatives.

Discuss with your Basis to provide authorization to VKM3 to release high risk credit orders for CEO and Medium risk for Head of Sales.

Regards,

SRK

[moazzam_ali]

Hi

In standard settings of credit this requirement can't be met. You need to go for userexit which SAP delivers with credit settings. Take help of your ABAPER and maintain a Z table with customer number, credit limit and SAP user to approve. System would block sale order after validating order value, crdit exposure with this Z table and approval would also validate the SAP user and Z table's users.

Thank$

[soumyadipta_das]

Hi MoazzaM,

Thanks for your reply.

Do I need to create any user group or user for the authorized persons first?

[VeselinaPeykova]

In case you wish to use a workflow for credit management processing (no SAP standard workflow exists for that, which is a shame), then you can use HR assignment to determine the credit representatives.

You need one HR position for credit manager for 2 lacs customers and anothe one for credit manager for 10 lacs customers. You assign the people responsible for releasing the orders to the respective position - H.O.S to the first one and C.E.O to the second one.

In PP01 you assign position 1 to SAP organizational object -> T024B for object type. Then you get another screen where you set credit control area and credit representative group.

You need to have an assignment set up for T024B to S - position in 'Maintain assignments for SAP organizational object types' in the workflow customizing to have this available in PP01.

When you have such assignments, the workflow expert can determine to whom to send the blocked orders (he has the credit representative group in the sales order and has the responsible agents with the PP01 assignment). You can use different HR positions than the ones already used for CEO or HOS if for credit management processing or the same (it is better to have them separate just in case the company changes its policy on who should perfrom credit release - you will not modify the existing positions, just will change user assignments for the credit manager positions).

How to use credit representative group in VKM4 if you do not wish to use a workflow?

You have it in the selection screen. This can be used for creating default variants for the users.

In addition you will restrict order release from VKM1-4 based on the authorization object I mentioned, so that order release can be done only by the person who is supposed to take the decision.

[moazzam_ali]

Hi

You need to maintain SAP user allowed to release the order based on credit limit in Z table. Lets say user ABC is allowed for 2 lac and user XYZ is allowed for 10 lac and so on.

Thank$

[VeselinaPeykova]

You can use credit representative group to differentiate between the two types of customers and based on that you can:

• either create a workflow that sends the items to the respective approver,
• or use credit representative group as a selection criteria in VKM4 transaction.

If you want to restrict an accidental approval of customers with 10 lacs by a person supposed to approve only 2 lacs customers, use authorization object V_KNKK_FRE with the corresponding activity and credit representative group.