setting simple credit limit & automatic credit limit

[Former Member]

Can any one give me steps and configuration involved in setting credit limit.

Pls give step by step configuration ..

If u have screen shots for this ..kindly send to this mail id vijayakumar.l@kaavainsys.com

[Former Member]

Hi,

I'll write down briefly.

1) Static credit check

Static credit check uses the value of confirmed quantities, regardless of delivery date. It also uses the open receivable balance and special general ledger accounts relevant for credit. You can also include open orders (regardless of delivery date) and open deliveries. Open deliveries include all quantities in deliveries as well as quantities in SD billing documents not yet passed to Accounts Receivable. The value is determined by multiplying the confirmed quantity by the credit price.

2) Dynamic credit check

Dynamic credit check in the order uses the value of confirmed quantities scheduled to ship within the credit window. The quantities are updated from schedule lines of existing orders and the order being entered. If the quantity confirmed is zero, the value of the current order (for credit limit check purposes) is zero. The value is determined by multiplying the confirmed quantity by the credit price.

Note that open order values are only updated from schedule lines that are relevant for delivery (TVEP-LFREL = ‘X’). Third party order items, for example, do not update open orders since they do not create deliveries (there is no mechanism to decrease the open order values other than by creating a delivery).

The length of the credit window in days is determined by multiplying the increment in Table T681F by 7 (weeks) or 30 (month or accounting period). The result is then added to today’s date.

3) Maximum document value check

Value is determined by multiplying the order quantity of each order line by the credit price. All quantities (confirmed or unconfirmed) are used in the calculation.

4) Change of critical fields check

Critical Fields are defined as the payment term, baseline date for aging and extra value days. The payment term is compared to the payment term from the Sales Area data of the Payer Account. Any entry in either baseline date or value days will trigger this check.

5) Days since next review date check

This check looks at the next scheduled review date from the customer master. If that date is more than the specified number of days in the past, the check fails. For example, a customer is reviewed on July 1, 1995 and the next scheduled review date is set to January 1, 1996. The maximum days specified is 15. On January 17, 1996, the check will fail if the next scheduled review date has not been updated.

6) Oldest open item check

This looks for any open item that is past due more than the specified number of days, regardless of value.

Note: If using this check with deliveries or goods issue and "Payer" indicator is on, then Payer must be defined as partner function for delivery.

7) Highest dunning value check

If the customer has at least one open item whose dunning level exceeds the specified value the check fails. The dunning level in the customer master is not used.

Note: If using this check with deliveries or goods issue and "Payer" indicator is on, then Payer must be defined as partner function for delivery

😎 User Exits

Availability check on release of blocked document

FORM USEREXIT_AVAIL_CHECK_CREDIT is added to program MV45AFZF. The purpose is to enable the user to determine if an availability check should be carried out on an order that has been released or has been approved as a result of a recheck. The reason is that some customers use the backorder process or rescheduling to determine availability.

The user exit is delivered in release 3.0F. OSS Note 53201 describes how it can be installed into earlier releases

Reward points if useful.

Regards,

Amrish Purohit

[Former Member]

hi,

Simple credit: It considers the document value+open items

Tcode FD32

Doc value: sales orders has been saved but not delivered

Open item: Order has been saved, delivered, billed & transported to FI but not receive the payment from the customer

Static: Checking grouprisk categorycredit control area

Groups: Sales, deliveries, Goods issue

I send the credit management document to u r mail

With regards

Rajesh

[Former Member]

<b>How To Do Configuration For Credit Management</b>

Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.

An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.

For example, if 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.

Credit limits and credit exposure are managed at both credit control area and customer level. You set up credit control areas and other data related to credit management in Customizing for Financial Accounting. The implementation guide is under Enterprise Structure -> Definition or Assignment -> Financial Accounting and then Maintain credit control area. You assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record.

Tips by : Kapilaa

Settings for determining the credit control area of a document. The settings of items 1 - 4 are taken into account according to their priority. The credit control area found is stored in field VBAK-KKBER.

1. Transaction OB38

Check which credit control area is assigned to the company code.

Company code:

Credit control area:

2. Transaction OVFL

Check which credit control area is assigned to the sales area.

Sales area:

Credit control area:

3. Transaction XD02 or VD02

Check which credit control area is assigned to the payer.

Payer:

Credit control area:

4. Transaction SE37

Is user exit EXIT_SAPV45K_001 being used?

5. Transaction OBZK

For the settings under items 2 - 4, field "All company codes" must be marked in Transaction

OB45, or the credit control area must be entered under the relevant company code in table

T001CM of the credit control areas allowed.

Company code:

Credit control areas allowed:

6. Settings for the credit checks

7. Transaction OVAK

Which settings do exist for the sales document type used?

Sales document:

Check credit:

Credit group:

8. Transaction OVAD

Which settings do exist for the delivery type used?

Delivery type:

Credit group for delivery:

Credit group for goods issue:

9. Transaction OB01

Credit management/Change risk category

Definition of the risk category for each credit control area. This risk category can be

assigned to a credit account by using Transaction FD32.

10. Transaction OVA8

Here, the individual credit checks for key fields

o credit control area

o risk category

o credit group are set. Take these key fields from the above settings and go to the detail

screen. In particular, check whether fields "Reaction" and "Status/block" are set

correctly. To carry out follow-up actions in case of a credit block, the credit check

status must be set (field "Status/block").

11. Transaction FD32

Credit master data for the payer of the relevant document.

Credit account:

Credit limit:

Risk category:

Currency:

12. Settings for updating the credit values Update of the credit values is required for the limit

check (static or dynamic credit limit check).

13. Transaction OVA7

Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to

field "Active receivable" in Transaction VOV7.

Item type:

Active receivable:

14. Transaction V/08, Pricing

In the pricing procedure used for pricing, subtotal "A" must be entered in a line for

determining the credit value (mark the pricing procedure and doubleclick on "Control").

Usually, the net value plus taxes is used. This way the system is determined to use this

subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for

update and credit check.

You can find the used pricing procedure of the order under "Item -> Condition -> Analysis".

Pricing procedure:

Line with subtotal = 'A':

15. Transaction OB45

Which update group (field "Update") do you use in the relevant credit control area? The

default setting is "12". If you use another update group, check whether this is fine with

you. If you open an OSS message, please tell us the alternative update group.

Credit control area:

Update:

16. Transaction OMO1

Which kind of update did you choose for structure S066?

In any case, "Synchronous update (1)" has to be chosen as the kind of update.

All other settings will lead to errors.