Minimum credit balance limit to be set for customer

[former_member221515]

Hello Experts,

I have one requirement.

Anytime, there should be credit balance of Rs. 3 Lakhs (i.e. advance should be more than billing by Rs. 3 Lakhs).

For example: Customer has provided advance of Rs. 5 Lakhs. Now our requirement is that: billing should not be done for more than 2 Lakhs rupees. There should be always a credit balance of Rs. 3 Lakhs (Advance - Billing).

Please let me know if this can be done using credit management module or by any other means.

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Deepak

[VeselinaPeykova · Accepted solution]

You need to clarify further the requirement with the Finance department and involve your FI consultant in the discussion.

What is the purpose of this additional amount? How it should be presented in the company legal reporting? What is the treatment of the additional amount at month-end (in case billing is executed in the next month)?

Do you need to print the additional 3 Lakhs in any of the customer documents?

If some amount is not expected to be used for covering the order value, then it does not make much sense to include it in the credit exposure (this is possible in standard with a special G/L indicator for example). You will also need to ensure that it would not cause problems with item overdue checks and have to prevent its accidental clearing (your FI consultant should know how to do that ).

[former_member221515 · Accepted solution]

Hello Veselina,

Thanks for your inputs. I myself is a SAP FICO consultant. We have already decided on all points. Let me know how we can meet the requirement of maintaining the limit of Rs. 3 Lakhs,

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Deepak

[VeselinaPeykova · Accepted solution]

If you have already decided on these points - why don't you share these details? In this way you increase your chances to receive higher quality of responses from the forum members.

If the amount of 3 Lakhs does not update the credit exposure, it will not be considered during credit limit checks.