Credit Block for incremental credit limit

[Former Member]

Hi Experts,

I have a unique requirement raised by customer. The requirement is to block the sales only for incremental credit limit changes. E.g. The original credit limit in customer master is say 10,000 and the same is changed to 20,000. Here the incremental credit limit is 10,000. Customer wants sales to be blocked for this additional credit limit of 10,000 till it is approved. This means that if a Sales Order is raised for say 9,000 then it should go through but if the sales order is raised for 15,000 then it should be blocked as the additional credit limit is not approved in system.

Is this possible using standard credit limit functionality?

Thanks in advance for your help

Regards

Sandeep Patil

[jignesh_mehta3]

Hello Sandeep,

When you increase the Credit limit of a Customer from 10,000 to 20,000 how do you get it approved in system?

Is there some approval process in place?

Although this does not directly solves your problem, but have you looked at Credit Limit Seasonal factor in OVA8.

Thanks,

Jignesh Mehta

[Former Member]

Hi Jignesh,

Thanks for your reply. We have implemented credit limit approval in system. Whenever credit limit is updated in customer master, 'Blocked' indicator gets activated in Customer Credit management and then the same will go through approval mechanism ('Z' enhancement). I think the season factor will really not help here as the credit limit is changed permanently.

Regards

Sandeep Patil

[jignesh_mehta3]

Hello Sandeep,

OK. So it is a Z-Development.

Then I do not see a challenge because unless the incremental Credit Limit is not approved the Customer's credit limit still remains the same as earlier one.

Say for example, if the Customer's current limit is 10,000 and the same is visible in FD32 (KNKK - KLIMK). Now the specific user increases the Limit to 20,000, the new limit is not updated in KNKK - KLIMK since it is not approved by Z-enhancement.

Imagine the Customer placing the order, while the increased Credit limit is still being approved, the system will check the current credit limit, that is 10,000 (KNKK - KLIMK). So if the Order is 9,000 it will pass the Credit check. If the Order is for 15,000 it will be blocked.

Thanks,

Jignesh Mehta

[Former Member]

Hi Jignesh,

Thanks for your answer. The problem here is that the new credit limit will be updated in field KNKK-KLIMK only. The moment this is done, 'Blocked' indicator will be activated (field KNKK - CRBLB) which prevents any further credit management transactions. In this process the credit limit is already changed to 20,000 which is visible to system and hence order of 15,000 will not be stopped. Looks like we somehow will have to handle this separately

Regards

Sandeep Patil

[jignesh_mehta3]

Exactly, I would suggest to hold this new Credit Limit in a temporary Z Table. And push it to KNKK - KLIMK once it is approved. With this you also need not block the Customer (KNKK - CRBLB).

Logically speaking, since the increase limit is not yet approved, it should not be updated in KNKK - KLIMK.

I think you need to speak to your Technical consultant to do a small change in the current Z-Enhancement program and it would be fine.

Thanks,

Jignesh Mehta

[VeselinaPeykova]

Using Blocked indicator in the credit master record is probably not a good idea, because it might cause problems for documents, which are in process at the time you block the credit account.

It would be better and safer to have some workflow for approval of the new credit limit and update the new value after it is confirmed.

Of course, if you were using FSCM Credit Management, things would have been easier

[Former Member]

Thanks Jignesh for your response till now. I think we will use field 'Recommended Credit Limit' (KNKK - DBEKR) which suits our purpose. The new credit limit to be updated in this field and only on approval it will be updated in KNKK - KLIMK.

Thanks a lot for your time in addressing the issue

Regards

Sandeep Patil

[Former Member]

Thanks Veselina for your reply. Unfortunately we are not using FSCM credit management and hence we will hold the new credit limit value till it is approved and then update the same in proper filed. By the way can you please let me know what new features are included in FSCM credit management?

Regards

Sandeep Patil

[VeselinaPeykova]

FSCM credit management is a bit different as a concept to what you are using now.

You can read more about it in the official SAP help documentation (search in google with fscm credit management site:sap.com).

It has some really nice features (credit ratings from external systems, credit limit requests, lots of flexibility on defining rules for credit checks) and especially if you are planning to move to S4HANA in the near future, it makes sense to look into it, because it is the only available option for credit control in S4.

There is a dedicated forum space on Financial Supply Chain Management in SCN, where you can also read more about the functionality.