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Credit Check without considering Open Billing Item Value

Former Member
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Hi Experts,

In Automatic Credit Management Functionality, where the Credit Check happens during Sales Order creation by comparing the Limit set in Credit Master with the Total Value of Open Sales Order + Open Delivery + Open Invoice (Without Accounting Doc) + Open Billing Item (released to Accounting but not paid by Customer). H'ever, i would like to know if it is possible to consider only total value of Open Sales Order + Open Delivery alone. Pls share if anyone come across such scenarios.

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Answers (2)

Answers (2)

ravi_kumar100
Active Contributor
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Hi SRK R,

   The open Billing Document will usually not be applicable as most of the business have invoices released to accounting during saving of invoice.

Open Billing Document are those Invoices which do not get released to accounting .

Once the Invoice gets released to accounting then it is termed as open items for which the payment has to be received from Customer.

In a normal Credit Management set up the Open Billing Document will always be "ZERO"  check it from your end too in S067 info structure.

Regards,

SRK

Former Member
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Hello SRK,

Pls read my message, i have mentioned what i mean by Open Billing Item Value.... Yes the correct term is Open Item and i mentioned as Open Billing Item value for easy understanding to all.

VeselinaPeykova
Active Contributor
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Why you would want to do that?

If a business user sends me such requirement, I would explain that this is not very reasonable.

Open billing documents are not supposed to be printed and sent to the customer.

Then what is the difference between open delivery and open billing from the supplier's perspective?

None.

If there is no difference in terms of risk from company's point (delivered products, but not invoiced in the FI sense), then why you need to estimate a lower risk?

A part of the consultant's job sometimes is to explain such things, understand the rationale behind certain business requirements and suggest alternative solutions.

Former Member
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Hi Veselina,

Thanks for your reply. I will tell you the reason why.... Accounting System used by Client is different and not SAP. Once Invoice created & Acc doc generated, there is a interface sending all SAP Accounting Docs to Non SAP System where the Finance team does all Business Accounting Functions. In SAP, Acc docs are not adjusted even if the Customers are making payments. So there is no necessity for Business to consider Open Item Value for Credit Check.

VeselinaPeykova
Active Contributor
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In my opinion, this is not a very good design. Even if the client is using a separate system to process accounting tasks, why you are not sending back the information for processed FI transactions to SAP? Even the most basic external accounting software, even the DOS-based ones, are capable of producing txt files (if have sufficient knowledge of the product), which you can use to update SAP. It is a real shame to pay huge amounts for SAP licenses and not benefit from integration.

The way you describe it, your SAP system is unsuitable as a source to produce legal reports or use credit control functionality in a reliable way. Credit exposure (which is used to calculate credit limit used) depends on what the customer ordered, but is not delivered, what was invoiced to him and what he paid.

It is possible to exclude certain postings from updating receivables with a different reconciliation account, it is possible with a special g/l indicator not to consider items for credit limit checks - any FI consultant, who is worth a paycheck could tell you that, but if I were you, I would definitely speak with my solution architect and raise my concerns on the design approach. No credit control functionality is better that an incorrect one.

ravi_kumar100
Active Contributor
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Hi,

In your system currently how the Account Receivables are maintained.

If A/R part of FI is not active check for any FD32 customer receivables whether it fills with the open items value.

Regards,

SRK

Former Member
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Hi Veselina,

Thanks for your reply. My responses to each of you remarks:

you Remark about Existing Design - I understand your point, but the implementation was done during early 2000 year and they also have some valid reason to using different Accounting System which i cannot disclose. Ofcourse, sending back data from external Acc system to SAP once the Customer Payment is made should be in place which is not the case as of now. But this we can consider as proposal and not a solution to my query.

your Remark about Possibility of excluding certain postings - Yes. i know it is feasible but the question is how.... You mean to say, the Custom approach to exclude Open Item Value for Credit Check is available only from FI side and not from SD Side.

Former Member
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Hi SRK,

Thanks for your reply. How can i check whether A/R part of FI is active or not?

VeselinaPeykova
Active Contributor
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If you had the payment information sent back, you would not need to exclude certain open items from checks, because you would work with correct and (hopefully) up-to-date information.

As to the reconciliation account way to exclude certain items from credit limit check - this is a SAP standard functionality - I am referring to transaction AKOF, which is well-known to FI people.

If you press F1 for the field W/o credit management, you will understand what I meant by excluding a FI posting, created from SD invoices, from credit limit check.

Still, it is not a good approach to use such workaround instead of fixing the design done 16 years ago. This setting makes sense in very specific cases, and my observation with end users is that this causes a lot of confusion when they start investigating a mismatch between FD33 and FBL5N.

Edit:

Additional clarification - this works to exclude open items from credit limit checks, not from checks for overdue items, but as you don't send back information on incoming payments, I guess, you don't execute such check at all.

This means (with your current design) that you will accumulate values in this special reconciliation account and will never clear that, neither your customer open items.

Message was edited by: Veselina Peykova