OVA8- Automatic Credit Control

[Former Member]

Good Day, 

I have a customer with a requirement to perform the automatic credit control BY Sold-to-Party NOT Payer. 

One Payer has a magnitude of Sold-to-Parties linked to it. 

Credit Check to be performed is the open items check (by Sold-to-Party)

I activated LVKMPFZ2 that I wanted to use to perform the credit check

The following fields gets passed to LVKMPFZ2:

UCC2_UPDATE

UCC2_KKBER

UCC2_KNKLI

UCC2_FLG_ORDER

UCC2_FLG_DELIVERY

I am ending up with KNKLI being the payer number.  How can I get the programme to populate with the Sold-to-Part Number?

Many Thanks

[Former Member]

Hi, 

So you have customer A, B and C with the same payer, managed in the same company code and by the same credit department. Is this correct?  "Yes"

If an order is placed by customer A and he does not pay, from whom you will seek the money? From the payer, not from customer A.  "No, Customer A".

If customer B places an order and he does not pay, you will sue the payer, not customer B."Customer B"

So what is the difference for you as a supplier of goods in credit management? 

The risk is the same, why don't you let the payer handle the problems in his subsidiaries. This is the same legal entity after all."No, this is incorrect. The Payer in this case is an independent company, using our system to distribute and sell on to 3rd parties"

If A, B and C are registered as different legal entities, then they probably have a common head office, which receives the invoices. "No" In such case it makes some sense to have them treated separately, because disputes would be handled with each of them as a separately.

Re: OVA8- Automatic Credit Control

[VeselinaPeykova]

This looks a bit like DSD process with a freight forwarder (if we assume that he does not buy the products from you).

You have customer A, B and C as separate legal entities, so you estimate the credit risk for each of them separately.

There is another company, who delivers products to them on your behalf (it does not purchase the products for customer A,B and C from you) and collects checks or cash. Then this company deposits the checks or the cash either in your cash office or in a bank.

All differences for cash collection or missing articles are charged to this special company (F).

In this case you can define the driver for the shipment with payer F and credit checks can be done as in standard. If you have more than one company as F or not all your customers are delivered by this company, you can use a separate partner function to identify them.

This is just a guess, but since F is not really buying the products from you, but is delivering to your customers, you probably pay him some fee in addition to freight charges.

The thing is, that from your explanation it seems that F is buying the products from you, in which case I do not see why the credit risk would be estimated against A, B and C... it would be logical to estimate it against F, because he would be the owner of the goods.

[Former Member]

Hi Veselina, 

Yes, Your assumptions above are correct. 

Yes, we sell to F, F sells onto A, B and C.  F gets paid a Fee.  F is supposed to collect from A, B and C and deposit into Company's bank account. 

If credit check is performed on Payer level, whole distribution chain is blocked. 

Thanks

[VeselinaPeykova]

Maybe you can still present this DSD option to your clients as a scenario supported in standard - at least to review it...

I had one client who actually had the process, which I described briefly, but initially there was some misunderstanding between the terms transfer of responsibility and transfer of ownership. Later it turned out that the invoices were issued to A, B, C by F on behalf of the producing company D, but cash/checks were collected by/from F. Only missing articles/damaged goods during transport were 'sold' to F (with a different price list).

[jignesh_mehta3]

Hello Cor,

If F is getting a Fee for collecting the money from A, B and C and deposit into company's account, he should not be the Payer in Invoice. Probably he should have another Partner function as explained by Veselina above.

Effectively the Payers still remain A, B and C and F is just a service agent facilitating collection of payments. I too feel SAP standard credit check should be used for Credit check on A, B and C and F should have some different partner function.

Thanks,

Jignesh Mehta

[Former Member]

Hello Cor,

Just trying to think of a solution from a different angle. There is a standard SAP credit management functionality called "Credit Account" (Also known as Credit Master creation for group of customers).

Refer this link on more details.. One Credit Master record (FD32) for Group of Customers

Based on that, can you try below.

• Specify your payer as a branch customer (I'm just taking those examples used in the document for clarity)
• Then try assigning sold to party as the Head office (Credit Account).

I am not sure whether this will work for your requirement. But thought it's worth for a try..

Please keep us posted on your findings.

Thanks

Regards,

Simon

[VeselinaPeykova]

So you have customer A, B and C with the same payer, managed in the same company code and by the same credit department. Is this correct?

If an order is placed by customer A and he does not pay, from whom you will seek the money? From the payer, not from customer A.

If customer B places an order and he does not pay, you will sue the payer, not customer B.

So what is the difference for you as a supplier of goods in credit management?

The risk is the same, why don't you let the payer handle the problems in his subsidiaries. This is the same legal entity after all.

If A, B and C are registered as different legal entities, then they probably have a common head office, which receives the invoices. In such case it makes some sense to have them treated separately, because disputes would be handled with each of them as a separately.

[Lakshmipathi]

For your billing type, there is one field "Branch / Head Office" where you can set "A" and retry the process.  But you mentioned the requirement is only for one customer in which case, it is not possible to achieve. 

G. Lakshmipathi

[michael_kozlowski]

Check out following thread for type of credit check in sales order

[VeselinaPeykova]

Did the customer explain why he needs that?

For now I can think of two possible ways to approach the problem without rewriting CM from scratch...

Please explain the business case in greater details, so that you can get relevant suggestions from the forum members.