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Credit Management with Horizon

Former Member
0 Kudos

Hi Gurus,

Here i have a scenario with Horizon period. We are using 1month as horizon period in dynamic credit check.

Now i am creating an order with delivery date after 45 day's from now. At this junction my customer is having credit limit and this order is accepted without any blocks.

while doing the delivery after 45 day's do i need to go for a credit check again or how this horizon period is going to effect this delivery.

Can any body explore this.

Thanks in advance.

Venkat.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

hai,

if u have a credit group set at the delivery level :

then

the system checks for the total credit limit available on the delivery date(left over credit of this month 30 + credit limit utilised till that 15 day of next month)

on the 45 day if the credit limit is available the delivery happens,

if credit limit is exceeded then basing on the credit group set at the delivery level

the delivery is blocked . remove delivery block at VKM5.

reward points

regards

sriram

Answers (2)

Answers (2)

former_member183879
Active Contributor
0 Kudos

Hi

If your process of credit check is enabled at delivery creation also, then obviously it will check for the credit limit at the time of delivery creation for a horizon of 45days from then. At that point of time, if the available credit is lesser than the required credit, then PGI cannot be executed.

And that is the objective of enabling credit check both at sales order adn at delivery stages. If you dont want this to happen, you can enable at only sales order stage and not at delivery stage.

Reward point if it helps.

Former Member
0 Kudos

Credit Management

The customer’s credit limit is assigned to the customer by going to the Logistics overview screen, Accounting, Financial accounting, Accounts receivable, Master records, Credit management, Change.

A credit control area is an organizational unit that is comprised of one or more company codes.

Create a credit control area and assign it to a company code in the Enterprise structure under financial accounting.

A customer’s risk category is a grouping category that controls the credit checks when automatic credit control takes place.

In SD credit check can occur in only three places: sales order, delivery and goods issue.

The system can use a simple credit check, static credit check or a dynamic credit check.

The simple credit check is set at the document type level e.g., sales order, delivery etc.

Simple Credit Check

Assign credit limit check to the sales doc type:

A – warning message

B – Error message

C – Delivery block

D – Automatic credit control

SAP enables static and dynamic credit checks so that a sales order for a good customer with a low risk credit rating is created and a sales order for a high risk customer with a high risk rating for the same doc type is blocked.

Automatic credit control divides the sales doc types, delivery doc types, and goods issue into specific credit groups.

An outcome procedure is defined using the credit group, the customer’s risk category along with the credit control area.

Risk categories are defined in the FI module.

Create the different credit groups e.g., for sales order, delivery, goods issue.

Assign the credit groups to the sales and delivery doc types.

Now define the settings for automatic credit control -> combination of credit control area, customer’s risk category, and credit group.

All that remains is the assignment of the risk category to the customer master record. This occurs in Finance by going to the Logistics overview screen -> Accounting, Financial Accounting, Accounts receivable, Master records, Credit management, Change or FD32.

The static credit check is a check comparing the credit limit assigned to the customer to the total value of open sales orders, plus the total value of open deliveries not yet invoiced, plus the total value of open billing documents not yet passed on to accounting, plus the total value of billing documents that have been passed on to accounting, but which have not been paid by the customer.

The dynamic credit check is a check comparing the credit limit assigned to the customer to the total value of open sales orders not yet delivered, plus the total value of open deliveries not yet invoiced, plus the total value of open billing documents not yet passed on to accounting, plus the total value of billing documents that have been passed on to accounting, but which have not been paid by the customer. The dynamic credit check has an attached time period that states that the system is not to include sales orders in the total of outstanding items created after the specified time period.

The credit relevant data is updated into an information structure, where it is accessed and updated. Thus each automatic credit control must be assigned an update group. The system allows for no update, and update group 000012, 000015 and 000018. However, update group 000012 is thorough and used in most businesses.

To view the customer’s credit master sheet, proceed from the logistics screen and go to accounting, financial accounting, accounts receivable, environment, credit management, check, credit master sheet [F.35].

Credit Management1

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.

1. Transaction OB38

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

Company code:

Credit control area:

2. Transaction OVFL

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

Sales area:

Credit control area:

3. Transaction XD02 or VD02

Check which credit control area is assigned to the payer.

Payer:

Credit control area:

4. Transaction SE37

Is user exit EXIT_SAPV45K_001 being used?

5. Transaction OBZK

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:

6. Settings for the credit checks

7. Transaction OVAK

Which settings do exist for the sales document type used?

Sales document:

Check credit:

Credit group:

8. Transaction OVAD

Which settings do exist for the delivery type used?

Delivery type:

Credit group for delivery:

Credit group for goods issue:

9. Transaction OB01

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.

10. Transaction OVA8

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").

11. Transaction FD32

Credit master data for the payer of the relevant document.

Credit account:

Credit limit:

Risk category:

Currency:

12. Settings for updating the credit values Update of the credit values is required for the limit

check (static or dynamic credit limit check).

13. Transaction OVA7

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:

14. Transaction V/08, Pricing

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':

15. Transaction OB45

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:

16. Transaction OMO1

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,

Rajesh Banka

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