Credit Management

[Former Member]

Hi,

How the credit management works as on the net value in the Sales order or on the gross value.

[Former Member · Accepted solution]

It works on the net value in the sales order.

Regards

Ak

[Former Member · Accepted solution]

HI Ayub Khan

How r u.I am doing fine .I remember u u have giving such good answers for my previous posts.Thank q very much.

And if we want it to consider on Gross value in sales order is there any possibulity

Suresh

[Former Member · Accepted solution]

I am doing fine and how about you.

The reason behind using net value for credit management is that this is the value that the customer will be billed for and this value will be one which he will pay. And if he defaults then he will be defaulting this net value only. This happens in any business scenario.

I am not aware of scenario in domain where gross price has been used for credit, probably thats the reason why the standard functionality of SAP considers Net Value.

If you are aware lof any such scenario ,let me know.

Regards

AK

[Former Member · Accepted solution]

Ayub,

That is the interview question i faced yesterday from Capgemini mumbai.

[Former Member · Accepted solution]

User-Defined Checks

If you want to carry out checks other than the standard checks, you can define your own checks in the appropriate user exits in Customizing for Sales.

This is one of the check type in Automatic credit check. So probably if there is such a scenario then we can map.

And other types are listed below:

Static Credit Limit Check

Dynamic Credit Limit Check with Credit Horizon

Maximum Document Value

Changes Made to Critical Fields:Examples of such fields are terms of payment and fixed value dates.

Date of Next Review

Overdue Open Items

Oldest Open Item

Maximum Number of Dunning Levels Allowed

Regards

AK

[Former Member]

Hi suresh,

Credit Mgt works on net value because we are giving <b>A in sub total column in net value line in pricing procedure</b>. I hope It will also work on gross value if u maintain <b>A at subtotal column in gross value line in pricing procedure</b>.

If I am wrong pls correct me.

Reward if helpful,

M.Prakash