link between sales order to Credit management

[Former Member]

Where can we link between sales order to Credit management?

[Former Member · Accepted solution]

Dear Gopala Rao,

http://help.sap.com/saphelp_45b/helpdata/en/dd/561069545a11d1a7020000e829fd11/frameset.htm

Credit memo: A sales document created on the basis of a customer complaint. This reduces receivables in Financial Accounting.

You may need to create credit memos for various reasons (for example, because of defective goods or because you have overcharged a customer).

https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=31043

Credit memo request is a sales document used in complaints processing to request a credit memo for a customer. If the price calculated for the customer is too high, for example, because the wrong scale prices were used or a discount was forgotten, you can create a credit memo request. The credit memo request is blocked for further processing so that it can be checked. If the request is approved, you can remove the block. The system uses the credit memo request to create a credit memo.

You can use credit memos in Sales and Distribution (SD) for assigning credit memo requests to the open invoices and in Financial Accounting (FI) for assigning credit memos and payments to the open invoices and carry out clearing with them. If you use both Financial Accounting (FI) and Sales and Distribution (SD), there is a 1:1 relationship between the credit memo request and the credit memo item posted in Financial Accounting (FI). As soon as you bill the credit memo request together with other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.

For credit memos, credit memo requests, and payments, you have the following assignment options:

- Assignment to a single invoice

- Assignment of a partial amount to an invoice

- Assignment to several invoices

When you post credit memos, the payment programme processes them automatically. If the credit memo is specifically related to a particular open invoice item, the payment program automatically attempts to offset the credit memo against the open item. If it is not possible to completely offset the credit memo against an invoice, you can post a debit memo to the vendor, who is to reimburse the amount. Then you can apply a multilevel dunning program.

Hope this will help.

Regards,

Naveen.

[Former Member]

If the Credit Check is not active in Sales Document Type, it will not activate Credit management for that particular sales order type.

Regards,

Rajesh Banka

[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.

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.

<b>1. Transaction OB38</b>

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

Company code:

Credit control area:

<b>2. Transaction OVFL</b>

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

Sales area:

Credit control area:

<b>3. Transaction XD02 or VD02</b>

Check which credit control area is assigned to the payer.

Payer:

Credit control area:

<b>4. Transaction SE37</b>

Is user exit EXIT_SAPV45K_001 being used?

<b>5. Transaction OBZK</b>

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:

<b>6. Settings for the credit checks</b>

<b>7. Transaction OVAK</b>

Which settings do exist for the sales document type used?

Sales document:

Check credit:

Credit group:

<b>8. Transaction OVAD</b>

Which settings do exist for the delivery type used?

Delivery type:

Credit group for delivery:

Credit group for goods issue:

<b>9. Transaction OB01</b>

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.

<b>10. Transaction OVA8</b>

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").

<b>11. Transaction FD32</b>

Credit master data for the payer of the relevant document.

Credit account:

Credit limit:

Risk category:

Currency:

<b>12. Settings for updating the credit values</b> Update of the credit values is required for the limit

check (static or dynamic credit limit check).

<b>13. Transaction OVA7</b>

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:

<b>14. Transaction V/08, Pricing</b>

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':

<b>15. Transaction OB45</b>

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:

<b>16. Transaction OMO1</b>

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.

Regards,

Anbu

[Former Member]

HI Gopala rao.,

In VOV8 sales document type there is <b>credit limit & Credit group</b> Where we asign the credit mage,ment data to Order

The configuration part of credit managemnt is

CREDIT MANAGEMENT:

A credit limit may be a customer’s credit limit, which is the permitted limit of value of open items, such as invoices not yet paid, plus the value of open sales orders.

The credit limit is the total combined value of the following documents:

Net value of sales order

Open Sales order: order created, but not delivered

Open deliveries: delivered, but not invoiced

Open billing doc: value of billing doc, which has not yet been forwarded to accounting

Open items: forwarded to accounting, but not settled.

Types of Credit Check

• Simple Credit Check

• Automatic Credit Check

o Static

o Dynamic

Simple Credit Check:

SPRO- IMG- SD- Basic Functions- Credit Mgmt/ Risk Mgmt- Simple Credit Check- Assign Credit Check to Doc Types.

• Based on sales doc types

• It will check all the above-mentioned docs & if the credit limit exceeds, the system responds in the way defined by you in the configuration menu.

• Cannot differentiate according to customer

3 ways to Control the Simple Credit Check:

A: warning

B: error message: the doc cannot be saved

C: warning message with delivery block: the doc can be saved but is automatically blocked for delivery.

Automatic Credit Check:

This credit mgmt control is maintained by using the automatic credit control functionality. The automatic credit control divides the sales doc types, the delivery doc types, & goods issue into specific credit groups. It also uses the customer’s risk category as assigned to the CMD of the payer & assigns an outcome proc to the combination of the above 2 objects, i.e. the credit group & customer risk category along with the credit control area. The definition of customer’s risk category is carried out in the fin accounting module.

A customer’s risk category is a grouping category that controls the credit check when automatic credit control takes place. Thus one can assign high-risk customers to risk category for e.g. A01, medium risk to B01 and low risk to C01.

Automatic credit check divides customers in to 3 categories:

• High-risk customers,

• Low risk customers &

• Medium risk customers.

A credit check &#61614;can only occur at 3 places: Credit Group

Sales order: for high risk customers

Delivery: for medium risk customers

Goods Issue: for low risk customers

Credit Control Area (CCA): highest organizational element in credit management. A credit control area is an organizational unit that is comprised of one or more company codes. A company code can have no more than one credit control area. Defined by FI.

Menu Path to create Credit Control Area: OB45: FI people.

SPRO- IMG- Enterprise Stru- Definition- Fin Accounting- Define Credit Control Area

Credit Control Area Description

0001 Credit control area 0001

1000 Credit control area Europe

Menu Path to Assign Company Code to Credit Control Area: OB38: FI people.

SPRO- IMG- Ent Stru- Assignment- Fin Accounting- Assign Comp Code to CCA

• It is possible to assign Credit Control Area to a Sales Area. This is more specific assignment than the assignment to Company Code.

Company code Company name City Credit Control Area Over write CCA

Menu Path for Defining Risk Categories: OB01: FI people

SPRO- IMG- Fin Accounting- Account Receivables & Payables- Credit Mgmt- Credit Control Account- Define Risk Categories.

Risk Category CCA Name

001 4500 Low risk

002 4500 Medium risk

003 4500 High risk

Menu Path for defining Credit Groups: OVA6

SPRO- IMG- SD- Basic Function- Credit Mgmt/ Risk Mgmt- Credit Mgmt:

• Define Credit Groups: OVA6

• Assign Credit Groups to Sales Doc’s & Delivery Doc’s

o Credit Limit check for Order Types: OVAK

o Credit Limit check for Delivery Types: OVAD

• Define Automatic Credit Control: OVA8

Define Credit Croups: OVA6

One merely creates a credit group for each differentiation in the doc type. You enter the credit groups when you configure the sales doc types for credit management & define the automatic credit check. The following credit groups are contained in the standard R/3 system:

• 01: credit group for sales order

• 02: credit group for delivery

• 03: credit group for goods issue

CG (Credit Group) Doc Credit Group

01 Credit group for sales order

02 Credit group for delivery

03 Credit group for goods issue

Assign Sales Documents & Delivery Documents:

Sales Doc Type Descp Check Credit Credit Group

OR Std Order D 01

Delivery Type Descp Del Credit Group GI Credit Group

LF Delivery 02 03

Define for each sales doc type whether a credit check should be carried out. Enter ‘D’ if an automatic credit check should be carried out.

Specify a Credit Group

Specify a Credit Group for the Delivery Type for which you want to carry out a credit check

Specify a Goods Issue Credit Group for the Delivery Type for which a credit check is to be carried out for goods issue.

SIMPLE CREDIT CHECK CANNOT BE ASSIGNED TO DOCUMENTS.

Define Automatic Credit Control:

One can now assign settings to the combination of the Credit Control Area, the Customer Risk Category & the Credit Group.

CCA Risk Cat Credit Group Credit Control

4500 001 01 Low risk sales orders

4500 001 02 Low risk deliveries

4500 001 03 Low risk goods issue

4500 002 01 Medium risk sales orders

4500 002 02 Medium risk deliveries

4500 002 03 Medium risk goods issue

4500 003 01 High risk sales orders

4500 003 02 High risk deliveries

4500 003 03 High risk goods issue

Select line item and go to details, you can decide whether to do Static or Dynamic Credit Check. Credit Horizon can also assigned here. Additional function checks can be performed here:

• A credit check when the maximum document value is exceeded.

• A credit check when changing critical fields.

The risk category assignment occurs in the same place as the customer’s credit limit, which is the customers credit management screen. That is, the risk category is assigned to the customer by the Finance in transaction code FD32.

The customer credit master record is divided in to 5 views:

• Overview Screen: gives an overview of credit settings in relation to the customer, including his credit limit, credit exposure, the %tage of credit limit used, his payment data & his risk category.

• Address: view gives the customers address details as they appear in CMD

• Central Data: is a view that shows the total credit limit the customer can receive across all credit control areas as well as the maximum limit he can receive in one credit control area.

• Status: view shows the customer’s actual individual details according to particular CCA being investigated. This includes his credit limit, percentage used, credit exposure, risk category, whether he is blocked due to credit or not.

• Payment history: view displays the payments made by the customer for a particular credit control area where a comp code is assigned.

Static Credit Check Dynamic Credit Check

Net Doc Value Net Doc Value

Open Order Open Order

Open Delivery Open Delivery

Open Billing Open Billing

Open Item Open Item

Compares the total combined values of the above-mentioned documents to credit limit. Plus credit horizon. Compares the values of the following documents to credit limit + credit horizon.

Credit horizon has an attached time period that states that the system is not to include sales orders in the total of outstanding items created after that specified period i.e. for the purpose of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. Maintained for low & medium risk customers.

Update Groups

Basically it is a info structure where system stores all the data about credit limit. The credit relevant data is updated in a info structure, where it is accessed & updated. Thus each automatic credit control must be assigned an update group.

• Update Group 000012

• Update Group 000015: delivery & billing

• Update Group 000018: sales order, delivery & billing.

Update group 000012, updates at:

• Sales doc: increased order value

• Delivery: decreased order value & increased delivery value

• Billing: decreased delivery value & increased billing amount

• Invoice: decreased billing amount & increased open item value.

Release Blocked Sales Order/ Deliveries:

• VKM3: sales order

• VKM5: delivery

• VKM4: both

One can see the offending document. Note on the right hand side, the ‘Status Field’. This shows the check, the doc failed. If this field is empty, the doc did not fail a credit check, even though it may be in the list of SD documents that are “required to be released”.

To release the doc, one indicates the doc to be released and then clicks on the ‘Release Button’. The result is the offending doc entry, highlighted green. One then proceeds to save, after which you are informed the doc number has been released.

• Net value with sub total ‘A’, in pricing proc, will be the basis for credit limit.

REWARD if helpfull

Thanks & Regards

Narayana

Message was edited by:

manam narayana

[Former Member]

Hi Gaurav

http://academic.uofs.edu/faculty/gramborw/sap/crm.htm

<b>**Reward if this helps**</b>

Regards

AK

[former_member810095]

Hello,

you can go into VA03 --> Menu --> Environment --> Partner --> display credit account (if the data is maintained, than the system springs into FD33). Another way is to check if the sales order type is assigned to credit management in the transaction OVAK (should be D for aut. credit management).

Best regards,

Lela