Credit chk

[Former Member]

I am tryin to configure automatic credit chk .......could someone plss list the settings for the same........... in FD32 it is not picking up credit limit amnt,risk category......plss list the setings to be made

or if u have snapshots plss forward them to

jimmy_ahuja@hotmail.com

Regards

maddy

[Former Member · Accepted solution]

Hi Maddy,

1) In FD32 you maintain the Credit limit it is not picked up from anywhere. In the CENTRAL DATA screen you maintain the TOTAL AMOUNT of credit limit available for the customer (considering the total of all Credit control areas for the same customer). Also the INDIVIDUAL LIMIT is used to maintain the Highest Indivdual amount that can be assigned as a Credit limit to a Particular Credit control area.

Now to assign a Credit Limit to a Credit control area maintain the Amount on Screen STATUS--> CREDIT LIMIT.

2) Also to assign the RISK Category to a particular Credit Control Area use the following Path:

IMG> Financial Accounting> Accounts Receivable and Accounts Payable> Credit Management> Define Risk Categories. Here we assign the Risk Category to Credit Control Area.

Hope the above helps you.

REWARD if it helps you!!

Regards,

Ajinkya

[Former Member · Accepted solution]

thnkss ajinkyaaa....it wrked

[Former Member]

hi maddy,

pl. follow the steps of credit check.

1. Define the credit control area under img=definition=financial accounting= define cr.control area.

2.assign it your company code and ur sales area under assignment under img screen.and assign it your sales document types and delivery types and pgi.

3. create the credit groups for your customers. it can be determined or happen in three stages either in Sales order , or else in delivery or in Post goods issue (PGI).

the menu path for credit groups as IMG= SD=BASIC FUNCTIONS= CREDIT MANAGEMENT AND RISK SETTINGS= DEFINE CREDIT GROUPS.

ex: Z1 - credit groups for sales order

Z2 - credit groups for delivery

Z3 - credit groups for PGI

4. define the risk categories. it is required b'coz the customer is of high risk, or medium risk, or low risk customer.

it is under IMG= FINANCIAL ACCOUNTING= FINANCIAL ACCOUTING AND GLOBAL SETTINGS= DEFINE RISK CATEGORIES.

ex: Z1- LOW RISK CUSTOMER

Z2 - MEDIUM RISK CUSTOMER

Z3- HIGH RISK CUSTOMER.

5.maintain automatic credit control check for ur credit control area and credit groups of the customer and risk categories. so that the credit check will determines automatically. menu path is IMG=SD=BASIC FUNCTIONS= CREDIT MANAGEMENT AND RISK CATEGORIES= DEFINE AUTOMATIC CREDIT CONTROL.

6. while u r creating automatic credit control, pl. copy from the std. one and make changes. so that all the existing details will copy and fine tuning have to be done by the SD consultant. basically this is integration with FICO.

So copy it from any one of the 1000 credit control area and make changes like

dynamic credit as C and activate the open for order and deliveries and save

i.e maintain credit control area + risk categories+ credit groups for the customer.

7. finally maintain the credit limit thru FD32 for ur customer. activate everything on that screen.

if you follow those rules, definetely cr. limit will determine for you.

pl. reward point if it is helpful.

regards

KR

[Former Member]

First of all, u must know which document should be blocked if there is no crdeit limit.

Then T-code OVA7 to configure which item category will check the credit limit.

Then T-code OVA6 to create the credit grp.

Then T-code OVAD to assign sales order and delivery to credit grp.

Then T-code OB45 to create the credit controll area.

Then T-code OB01 to create the risk category.

Then T-code OVA8 to assign the Crdit Control area to the risk category to the credit grp.

hope u got the answer,

Reward if helpful.

Ahmed

[former_member227476]

dear maddy,

CREDIT MANAGEMENT

In normal business process, credit sales are most important. Each and every customer purchases the material on credit basis. When the business grants materials on the basis of the credit then there should be certain limit for the credit, otherwise business incurs loss if customer not paid back. so has to avoid this kind of situation SAP provided a tool called credit management/Risk management by which the business can monitor the credit policy of the customer. To look after the credit policy of the customer, one organizational unit can be defined and maintained in FI module and whose responsibility is to grant and to monitor credit of the customer that is called CREDIT CONTROL AREA.

(1) CREDIT CONTROL AREA:

It is an independent organizational unit which is responsible to grant and to monitor the credit. Credit control area can be defined for a single company code or it can be defined to number of company codes. that means one credit control area can have number of company codes.

Path: img-ent.structure-definition-financial accounting-define credit control area

Choose existing one, copy, rename it

Currency: assign the currency of the credit control area

Update: Ex. 000012 it is the update for open orders/delivery/billing document values. it controls when the open sales orders, deliveries and billing documents are updated. the following update groups can be assigned for updating credit related statistics in S & D.

1) Update group 000012: if we assign this update group for credit control area then the documents are updated like below:

a) sales orders: it increases open order value from delivery relevant schedule lines.

b) delivery document: it reduces open order values and increases open delivery value

c) billing documents: it reduces open delivery value and increases open billing document value.

d) Financial accounting document: it reduces open billing document value and increases open items.

2) Update group 000015:

a) Delivery document: it increases open delivery value and in increases open billing document value.

b) financial accounting document: it reduces open billing document value and increases open items.

3) Update group 000018:

a) Sales orders: it increases open delivery value

b) Billing document: it reduces open delivery value and increases open billing document value

c) Financial accounting document: reduces open billing document value and increases open items

If system unable to update the document with specified update group then it will go to next possible update group.

ex: if we assign update group 000012, which is in delivery document reduces open order value and increases open delivery value. If in the sales order some items are not relevant for delivery then system automatically determines update group 000018.

Fiscal year variant: ex: K4

Default data for automatically creating new customers:

If maintain the values in any one of the fields then system automatically creates credit control area date for new customers by default.

a) Risk Category: ex: 001

b) Credit limit: maintain amount (specify the credit limit of the customer)

c) Representative group: ex:001

assign credit representative group who is responsible to monitor the credit of customer.

□Check all company codes: It specify that this credit control area is eligible for all the company codes. save it.

(2) Assign company code to credit control area

Path: ImgEnt. structureassignmentfinancial accountingassign company code to credit control area.

choose our company code from position button and assign our credit control area.

save it

(3) assign sales area to credit control area

Path: imgructure—assignment—sd—assign sales are to credit control area choose our sales area and assign credit control area

(due to this assignment the credit limit will be apples for all the materials that belongs to different divisions), save it &exit.

Define groups: (FI-CO settings)

here we assign groups and assign this groups to customer.

img—financial accounting—accounts receivables and accounts payable—credit management-credit control account define groups.

Go to new entries and define credit groups and assign this group to credit control area .

Define Risk Categories:(FI-CO settings)

Here we define risk categories for the credit control area and assign the risk category to the customer

Path: same as above

define risk categories

go to new entries and define risk categories , 001-high risk,002-medium risk,003-low risk

Assign to credit control areas

Define credit representative groups:

It is a user group for particular credit control area and we assign each customer to a customer group.

Path: same as above

Go to new entries, define credit representative group and assign it to credit control area ,save it & exit.

Define Credit Representatives:

Here we allocate credit representatives to credit representative group for credit control, each credit representative group is responsible for certain number of customers

We define one partner function for each credit representative group.

ex: partner function KB , Partner type PE

path: same as above

cred.re.gr. CCA partner function partner counter co. code personnel no. nameID.no

001 1000 kb check

this personnel number should be assigned to HR Master Record.

SD CONFIGURATION SETTINGS:

Enter settings

path: IMG—S&D—Basic Function—Credit Management/Risk management—Credit Management/ Risk management setting—enter setting.

a )conditions-procedure:

choose our pricing procedure& Assing Subtotal as ‘A’-KOMP-COMPRE credit price, to net value or gross value.

b)Configurationally partner functions:

-Select sales doc .header, Click on ‘change’ icon

-Select partner determine procedure(TA) (click on partner function in procedure control button under dialog structure. & check partner function KB-credit Rep. KM-credit manger as a mandatory, as for these 2 factor belong to partner type PE(personal)

Credit Representative & credit manager are employees in the business who are responsible to monitor the credit of the customer.

c) output types:

Here we define output type ex:-KRML-credit processing.(choose it position button select it )

*General data:-

Access sequence: 005

Check Access to conditions:

check multiple

*Default Values:

Dispatch time: send immediately

transmission medium: simple mail

Partner Function: KB

>G0 to VV11. create condition Records for out put type KRML

>Specify output type KRML, Specify Key combination & select the condition tables

>Specify credit control Area, credit Group, Risk category partner function-Kb, Transmission medium:7(simple mail)

>specify dispatch type:0,language:EN

>Select condition line item & click on communication & maintain the data(message)

>Go back, save it & exit

This out put can be used to exchange credit information.

Maintain SD update in LIS for credit management

path: IMG—Logistics—General—logistics information systems—logistics data warehouse—updating—updating control—activate update—Sales &Distribution

--Choose ‘so66’,& click on it & check day on it & check day on popup box. so that system updates open orders for credit Management daily wise.

b)DETERMINE ACTIVE RECEVIBLE FOR ITEM CATEGORY

--Choose Item category TAN & check credit active.

This indicator propose into vov7 of TAN.

Receivable Risk management

When sell the goods payment guarantee for the goods plays a vital role, along with credit management receivable risk management provides another effort tool guarantee agent credit risk

a) Define forms of payment guarantee

-- go to new entries & define payment guarantee form ex; z1

& payment guarantee category : 3 payment card financial document category: R-receivable Financial document type,01letter credit payment guarantee form payment cards

b) Define & Assign payment guarantee schemes

a) Define payment guarantee schemes

here we define payment guarantee procedure

ex;-000001-letters of credit.

000002-payment card

-Assign forms of payment guarantee. Select own payment guarantee procedure click on form s of payment grantee

--Go to new entries, specify sea no:02 specify payment guarantee form;z1-payment card

b) Define customer determination schemes her we define customer guarantee procedures

ex:- 0001- letter of credit

0002- payment cards

C) define document determination schemes

here we define document determination. procedure

ex:- 01-standard

0 2 – letter of credit

it will be proposed into V0V8 of ex;-or

d) Assign document scheme to order types:

- choose sales doc type or assign document payment guarantee procedure Ex:02 so that system automatically proposes this payment guarantee procedure by default.

e) Define payment guarantee scheme determination

-- Go to new entries, specify customer, payment guarantee procedure(0002) document guarantee procedure(01) Assign payment guarantee procedure

ex;- 000002.

save it & exit

with this configuration setting payment card concept can be mapped.

CREDIT MANAGEMENT:-

Define Credit Rules:

path: IMG – SALES & DISTRIBUTION – BASIC FUNCTIONS – CREDIT MANAGEMENT / RISK MANAGEMENT – CREDIT MANAGEMENT –

1) Define Credit Rules:

Here we define Sales Documents, Delivery Documents and PGI documents as those transactions deal with credit management in the same manner.

ex:- 01 – credit group for sales order

02 – credit group for delivery

03 – credit group for goods issue.

2)Assign sales documents & delivery documents:

a) credit limit check for order type:

choose sales document type OR, & assign type of credit check that system has to carry out for the sales order.

If system has to carry out simple credit check then assign the values from ‘[] to C’

If system has to carry out automatically credit check then assign value as

‘D’ – Automatic credit check. Depending upon the value that we set here system responds when the credit limit exceed. If you set ‘C’ then system blocks the delivery for the sales order & the authorized person in the business has to take the decision whether to accept the order or to reject the order.

b) Credit limit check for delivery types:

choose delivery document type LF & assign credit group for delivery as a 02. & assign 03 – credit group for goods issue on goods issue for credit group.

save it & exit.

(A)CARRYING OUT SIMPLE CREDIT CHECK ( blank,A, B , C )

- Go to VA01, raise the sales order.

- Specify the order quantity whose value exceeds customers credit limit & check the status.

- System gives the status that ‘ Credit limit has been exceeded’

- Save the sales order

- System blocks the delivery ( in delivery document) then the authorized person can release the block by taking transactions Ex:- VKM4 – ALL

VKM3 – sales document

VKM5 – delivery

path: Logistics – S&D – Credit Management – S&D Documents – VKM4- All.

- Specify ‘ Credit Control Area’, ‘ Document type’ & Select Sakes Document & deliveries.

- Click on ‘ Execute” Icon

- select ‘Sales Document’, Click on ‘ Release ‘ button

- Click on ‘ Save’

- Click on ‘ Lead list’

- Go to VL01N

Initiate out bound delivery

- Go to VF01 raise the Invoice.

Note: System doesn’t release the order level , delivery level then go to VA01 & remove the ‘Credit Limit Lock’ at header level.

- Save it & Exit.

(B) AUTOMATIC CREDIT CHECK (D)

System carries out automatic credit check by following different different checks. System gets credit exposure in automatic credit check like simple credit check. But it has the more control on the document then the document then the simple credit check.

MAINTAIN MASTER DATA (FD32)

PATH: Logistics S & D  Credit management Master data  FD32  Change.

While defining credit control area the FI/CO consultants they maintain this values in the field like credit group, credit limit & checking group, risk category.

System automatically creates credit master for new customers. In credit master we maintain data as well as system also updates certain data.

specify customer number, credit control area,

check overview, check address, check control data, check status, check payments.

Overview: System gives the overview of the customers credit history .Ex: what is the credit limit, credit exposure dunning levels etc

Address: System gets the address from the customer master

Control data:

- specify the total limit(total credit limit)

- specify the individual limit at the company code level

Currency: INR

Status : total company cod In this screen system shows the data like credit limit and how much credit limit used what is the receivables value, sales value, customer risk category and customer credit group.

Payment history:

In this screen system shows the payment history of the customer-payer if he paid any amount. system updates this screen with payment details due to the indicator that we check in cocode data section of customer master in payment transaction tab ‘check payment history’, save it.

AUTOMATIC CREDITY CONTROL:(OVA8)

Path: imgsd basic functionscredit management/risk managementcredit management.

Define automatic credit control:

- Go to new entries,

- specify credit control area, risk category and credit group

Document controlling (first section)

--No credit check: we can specify the routine for credit control area Ex: when system should not carry out credit check for sales document which doesn’t contain line items

check item check: this control specifies from where system has to carry out credit check in document. ex: as soon as the user enter the customer number in the sales order or enter the material number

Released documents are still unchecked:

Deviation in percentage: It specify the deviation factor for documents that have already been approved for the credit. ex: if u specify deviation factor 10% & order for 10 boxes & the price Rs. 100/- and the credit approved for the Rs. 1000/-, then customer wants additional boxes te deviation factor exceeds 10%, then system automatically carries out credit check again.

Number of days: specify the number of days after which a changed document must be rechecked for the period. It is used for credit document that have already been released by credit representative but if they have subsequently changed then system doesn’t carry out another credit check, if

a) the value of the changed order is not greater than the value already approved for the credit .

b) the current date is not greater than the original release date plus number of days that we specified here.

Credit limit seasonal factor(percentage):

specify a percentage tolerance for this limit upto which the customers credit limit may be temporarily extended or reduced ex: if us enter 5% her and if u select minus fixed then if the customer credit limit is 10,000 and it is extended by further 500/-.

From & To: specify the dates by which the plants have to confirm the quantities. It is used for promotions.

check in financial accounting:

check-payer: It indicates the credit checks against open items, oldest open item and dunning level are carried out using the open items and the dunning level of only with current payer. system doesn’t take other payers who are assigned to this credit area.

Permitted days and permitted hours: It specifies the time period for accounts receivables summery in days & hours. System uses this value to verify whether the data in the accounts receivables summary exceed the period that we set in days & hours.

CHECKS (NEXT SECTION)

reaction status/block

 STASTIC    OPEN ORDER  OPEN DELIVERY

 DYNAMIC   HORIZON  

 DOCUMENT VALUE   MAX.DOC. VAL. 500.000.00

 CREDIT FIELDS  

 NEXTREVENEWDATA  NUMBER OF DAYS 

 OPEN ITEM   MAX.OPEN ITEM% 

 OLDEST OPEN ITEM   DAYS OLDEST ITEM 

 HIGH DUNN. LEVEL   HIGH DUNNING.L 

 USER 1  

 USER 2  

 USER 3  

STASTIC:-

System takes open sales document, delivery, billing document, open items into consideration to carry at credit check. System gets the credit exposure with the total value document and customers credits unit. If the credit limited exceeded this system reacts according to value that we get in reaction fields

DYNAMIC:-

In dynamic credit check system gets the credit exposure the static part. But the difference between static &dynamic is, dynamic check contains horizon period ex 2 month.

To evaluation the credit check system takes for the open items, open orders, open delivery into consideration that falls below the 2 month. system doesn’t take those document that fells ofter 2 months.

DOCUMENT VALUE:-

In case credit check should be carried out based on the max.document value. It is relevant for new customer to when credit limit has not been defined.

CRITICAL FIELDS:-

Payment terms ,fixed value date, additional value dates are considered as a critical fields. If the data has been changes in those fields system has to carry out credit check.

NEXT REVIEW DATA:-

System automatically carry out credit check based on the next review date.

OPEN ITEMS:-

System carries out credit check, based on the open items. system takes the maximum percentage of over due items in open items and number of days when the open items are over due.

OLDEST OPEN ITEM:-

It indicates to carry our credit check based on the age of the oldest open item.

HIGHEST DUNNING LEVEL:-

System carryout credit check based on the higher dunning level.

USER1,USER2,USER3:-

These check can be used for customer specific credit check by using user exist save it.

●Go to VOV8, & make sure that credit limited check should be ‘D’ automatic.

●Go to VAO! & raise the sales order. check the dynamic credit check static & save the document.

●System block the sales document for delivery then release it by using transaction codes VKM5.

TOR AND AVAILANBILITY CHECK

So has to confirm the quantities for a particular line item in the sales order on particular day system carried out transfer of requirements(TOR) & AVAILABILITY check, so has to confirm the quantity on particular day as system should know what are there requirement of the sale order and delivery with MRP then system carries out availability check function, to confirm the quantity on particular day. depending upon the IMG setting system carries out availability check function based on 3 methods:

A) Availability check with ATP logic or against planning:

In ATP logic systems ATP Qty while carrying out availability check function for

particular line item(ATP qty=warehouse stock +planned receipts planned issues)

Planned Receipts: EX:- purchase requisitions, purchase orders, stock in transfer stock at inspection etc.

Planned Issues:- EX:- open sales order & open delivers

B) Availability check against product allocation:

Availability check can be carried out against product allocation in which system automatically restrict the user to confirm the quantity beyond reserved quantities per particular customer. EX:- Availability qty =100, existing orders=10,then system automatically distributes to items evenly to the sales order.

C) Rule based Availability check:

Rule based availability check can be carried out based on the business transaction.

EX:- For normal sales order system has to carry out availability check for special sales order ex:- cash sales and rush order systems need not to be carry out availability check,

In rule based availability check system in which system carried out Global availability to promise in all plants. In this check system transfers the requirements to APO system where GATP takes place and the result of the availability check transferred to R/3 system. This process takes place with the transaction code CIF(central inter face) inR/3.After carrying out availability check function system proposes(by using ATP logic) default values of ATP check result to the user in a dialog box, in which system gives the the choice to the user to take the decision in contest of insufficient stock.

a) One time delivery: If the user choose one time delivery and the order Quantity is 100 units system confirm 50 units then systems automatically confirms as a zero. If the user saves the document with the zero confirm qty then system trace the sales order as aback order(V_RA), which can be confirmed later by RESCHEDULLING(V_V2).

b)Complete Delivery : If order Qty=100, Availability stock = 50, system says that remaining can be given after one week. Then if the user select this option then system push up existing confirmed qty to after one week and the total qty can be confirmed after one week only.

c) Delivery Proposal : If order qty=100, system confirms 50, and remaining 50 can be confirmed after one week. If the user chooses this option then system confirms 50 qtys today allows the user to delivery 50 quantities today remaining 50 can be delivered after one week.

CONFIGURATION SETTINGS FOR TOR:

Define Requirement Class:

Path: Img  S&d  Basic functions  Availability Check & Transfer of requirements  Transfer of requirements  Define Requirement classes

Requirement classes control MRP, Requirement consumption, strategy, relevance for planned. It specifics whether the availability check & TOR to be Called out for transactions. ex : Sales Order

It determines whether requirements relevant for MRP or not, the allocation indicator from the sales view which controls the settlement of customers requirements with planned independent requirements. It determines the item b to be settled as an availability heck. Assignment, the settlement profile the results analysis key. The TOR and Availability check functions are globally controlled using the requirement class for all the Sales documents. The values from the Requirements class are transferred to scheduled the of the sales documents class are transferred to scheduled the of the sales document default values and can be over written there.

Define Requirements Classes : Requirement class defines whether the system has to carry out availability check based on the STP Qty. Ex:

Define Requirement Types: Here we define requirement type, Ex: and Assign to Requirement class that we defined in the promote step.

Determination of Requirement types using Transaction:

Requirement type is going to be determined for sales document by following a search strategy. .

a) First System checks strategy group in MRP3 view if it trend requirement type then system takes from it, otherwise.

b) It will go to MRP group in MRP1 view, otherwise

c) It will check to Material type, otherwise

d) It will go to item Category + MRP type, otherwise

e) It will go to Item category only, otherwise

f) Finally system determines the transaction b not relevant for TOR & Availability check.

Choose Item category TAN+MRP type PD=Requirement type =0

Define Procedure for each schedule the category:

Here we define respective schedule the category of the sales documents, whether an availability check an TOR should be carried out. This setting is relevant for sales documents only. It is fine tuning of availability check for sales documents TOR & Availability check function can be activated at sales order level those are proposed in to schedule line category level. If u want to deactivate TOR availability check function at schedule the category level and want to deactivate at requirement class level it b impossible.

Ex: If u want to check availability w/o transferring the requirement we can use it.

Choose schedule line category CP & Activate Availability check, requirement & Product Allocation

Block Quantity confirmation in delivery Blocks:-

When we transfer requirements to MRP then confirmed quantities is also reserved for confirmed sales documents, if transaction is blocked for delivery the reserved quantities are also blocked so that the conformed quantities cannot be used by any other purpose. So has to avoid this situation we can block the transfer of requirements(TOR) for delivery blocks, in this case requirements transferred to MRP but will not be reserved, that will be cleared once we save the documents then system shows confirmed qty as zero.

When we remove the delivery block then system automatically carries out availability check & confirms the qty.

A) Deliveries: Blocking region for sales Area:

Here we define blocking regions for TOR ex:-credit limits

B) Reasons for scope of delivery blocks: TOR. Block:

Ex:- 01 credit limits-check confirmation block.

Maintain Requirements for TOR:-

Here we can define our own requirement with the help of ABAPER for TOR

ex:- a)102- prevent reservation in the event of credit block

b)102-purchase requisitions.

system does’t create purchase requisitions for sales order line items if it has a credit limit.

Availability check:

Configuration setting:-

Availability check with ATP logic or Against planning:-

a) Define checking group:

checking group define what kind of requirement record system use to create when sales order & deliveries are processed for this material. We can create 2 kinds of requirements records

a) individual requirement records: that means systems creates requirement record for each S&D document.

b) summarized requirement Records: That means system creates requirement records under certain condition in the material master record. There are 2 type of summarized requirement record:

a. summarized requirement records for each day.

b. summarized requirement records for each week

Define checking Action;

Here we define 01- daily requirement -B 02- Individual requirements -A

Where b-total record per day

a-single record per day

B) Define material Block for other users:

When 2 users tries to confirm the quantities for the sales order for same material at a time system will be confused to confirm the quantities both sales orders. So has to avoid this kind of situation we can block the materials from confirming the quantities for 2 users at a check, check block

C) Define checking group default values:

Checking group is going to be determined depending upon the material type & plant.

-Go to new entries, specify material type, ex;-FERT

& plant = checking group of availability check:02

D) Carry out for Availability check:

Here we define checking rule for the Availability check & allocate them to the checking group. The checking rules specifies the scope of the availability check . for a respective transaction, means which planned receipts & planned issues systems has to taken into consideration and also it determines whether system has to take RLT into consideration.

Action:

*Select checking group of availability check-02,checking rule=01

*Go to details icon, & check which planned receipts & planned issues system has taken into consideration for availability check

*save it,exit.

E) Define procedure by Requirement class:

Here we define requirement class whether on availability check & TOR should be carried out the setting that we carries out at requirement class level they are at global level. There setting automatically copied into define from of requirement class and vice versa.

Action:

*Choose requirement class: 041 & check availability check & TOR (requirement)

F) Define procedure for each schedule line category:

Here we carry out fine tuning setting for availability check at schedule line category level. Here we define whether system has to carry out Availability check for particular transaction.

Ex:- You we want tp implement a availability check w/o TOR for a particular transaction. According to settings at requirement class level TOR & availability check function activate & those setting will be copied into the schedule time category by default, so that at schedule line category level we deactivated TOR

G) Determine procedure for each Delivery Item category:

Here we switch on or switch off availability check functions of a delivery item category

*choose item category ‘TAN’. & Specify the appropriate value.

H)Checking group for updating back orders:

Here we assign checking group to a plant that rule specifies for individual application, according to which the availability check is carried out;

I) Define Default settings:

Here we define the result of the availability check.

*Choose your sales Area, & check fixed dates& Qty options & specify ‘D’ or ‘E’

Where: D- Dialog box in the case of shortages (one time delivery)

E- Dialog box in the shortages (delivery proposal).

BATCH MANAGEMENT

In the normal business process material are processed in the form of batch, especially in the Pharmas Industry. The material are produced, tested maintained inventory management. and delivered to customer in the form of batches. The advantages with the batch defects can be identified. so that the business can follow LIFO or FIFO method preferably FIFO method to move the stock from inventory.

Note: In SAP batch management configure in PP,MM,SD, module.

1) Configuration Settings:

• Create material master and make sure that checking group of Availability check in sales General/Plant view has been maintained as a CH Batches.

• Check Batch Management , Check approved batch record requirement

• save it

2) Specify the Batch level and Activate Status management:

The batch can be activated the plant level, material level, client level. If you activated it. at plat level then batch number and unique number at plant level, if you activated at material level then the batch number and unique only with the material number that means when the material is going to extended to another plant then it requires new batch data in the plant. If you activate at client level then the batch number and unique for that material at all plants.

Path: Img  Logistics  General  Batch management  Specify batch level and activate  Status management

a) Click on batch level; here with specify at when level batch should be activated, by default batch is going to be activated at material level.

b) batch Status management; here we activate batch status by default if and activated

3) The Activated Internal batch number assignment:

Path: Img  Logistics General  Batch management  Batch number assignment  Activate internal batch number assignment  activate batch number assignment

select the automatic batch number assignment active.(by default it is selected)

4) Maintain Internal Batch number Assignment Range:

Path: Img  Logistics General  Batch management  maintain internal batch number assignment range

click on number ranges icon

click on insert intervals icon and defined number ranges for batch

save it and exit.

SAP uses condition techniques to determine batch number automatically.

CONDITION TABLE(V/C7):

Path: Img  Logistics General  Batch management  batch determination and batch check  condition table.

define sales and distribution condition table

create condition table for batch determination here we define condition table

ex: 001 – material

002 – customer / material

003 - customer / plant / material etc.,

Create Access Sequence:

Path: Img  Logistics General  Batch management  Access Sequence  define SD the access

create access sequence for Batch determination

Here we define access sequence

Ex:- SD01 – customer/material

here we assign condition tables 002-customer/material

Define strategy types(like condition types)

 define S&D strategy types.

In strategy types we can maintain data.

a) SORT Rule

b) maximum no. of batch splits

c) Determine whether batch number can be change for batch split during batch determination

d) unit of measure in which batches are displayed for selection

e) whether batch determine should be performed in a dialog mode.

f) quantity proposed

Batch search procedure definition:

 define S&D search procedure.

Here we define batch search procedure ex:SD0001,select it & copy it & rename (ZSD0001) save it.

Batch search procedure Allocation & check activation

Allocate S&D search procedure/Activate check.

Go to new entries & specify sales area, sales doc(or)&Assign our batch search procedure.

check batch

It is to be checked for manually internal batches

Activate Automatic batch determination in S&D::

A) Automatic Batch determination for sales order items;

• choose item category TAN and check the automatic batch document

• this indicator proposed into VOV7 or TAN

B) Activate automatic batch determination for delivery item category;

*choose item category TAN and activate automatic batch determination

*choose item category DLN and activate automatic batch determination (the item category from sales document to delivery on going to be the copied )

if the delivery document contain, a line item with out reference to sales order then system determined item category for that line item by following a item category determination rule delivery document like below

a) delivery document type + item category group from material master + usage + higher level item category = default item category

Maintain Batch Records for S&D Batch determination procedure(VCH1):

Path: logistics  Central Function  Batch management  Batch determination  Batch Search Strategy  S&D Search Strategy

 VCH1 Create

 Specify Strategy type ex: SD04 Customer/material

 Click on key combination and select the table, specify customer number, material

 save it and go back

Crete Batch Master(MSC1N):

Path : logistic  Central Function  Batch Management  Batch  MSC1N

Create

Specify the Material Number Plant and Storage location and Maintain

• Basic Data One

*specify period data

*Specify the self life expiration data

*Specify the Availability data today

*next inspection after 15 days

• Basic Data Two

*Specify description

*save it and not down the “batch number”(with zero) ex: 0000000181 & 00000000182.

*go to change mode and batch status as and restricted use

*save it and exit

go to MB1C

Internal Stock

Maintain Stock with batch number

Save it

go to to VA01 rouse the Sales Order

Go to Line Item, go to “Batch field” Click on F4, Select relevant ‘Batch Number’

Note : Here to propose Batch number automatically we need to ask ABAPER to write a Interphase .(*which will fetch relevant Batch number for the material)

REBATES

Rebates are special kind of discounts that area paidful to the customer “pair”. on certain sales volume. Rebates are paid after rebate agreement period.

ex : one year the customer should purchase specified if he purchased that specified sales value then only to be rebates are going to be paid by raising credit memo.

Configuration Settings:

 Activate three control

a) Check the rebate processing active at the time of defining sales organization

b) activate check result at customer master pair

c) Activate check relevant for rebate whole defining to billing document type ex : f2

 Including Condition Type,B002 with, subtotal =7, requirement = 24 and accounting key = ERB, Accrual Key = ERU, in V/08 B/N, Discount or after total discount value we have to put after discount value if we use rebate basis.

(Requirement 24 excludes rebate condition type during sales order processing and including during the billing process)

Create Rebate Agreements(VB01):

Path: Logistic S&D  Master Data  Rebate Agreement  Rebate Arrangement  VB01 Create

Specify Rebate Agreement ex: 0002 – Material Rebate

Inter, Specify the description, Rebate Recipient(Customer – Payer), “Currency” “Validity Period”

Agreement Status: Open & Verification levels

F- Do play totals by payer – material

*Click on Conditions maintain “ Sales Trees”, “Customer number”, “Material Number”, “Validity Period”, Amount”.

*Select Condition line item, 40 to Scales maintain scales, save it.

*note down the Rebate Agreement Number.

 Define Rebate Agreement Type:

Path : Img  S&D  Billing  Rebate Processing  Rebate Agreement  Define Agreement type  Define Agreement types

Choose Rebate agreement 0002 goto Details icon and maintain dataas below

*Default Values

 Proposed Valid from : Specify the beginning validity date which system automatically proposes. Ex: todays date

 proposed valid to : the value of this field proposes how long this rebate condition record should remain in force. ex-2

 Payment method: The value of this field determined how the payment going to be made ex: cheque or cash etc.,

 Default sTatus: It specifies Default status of the rebate agreement. The system automatically proposes when you create a rebate agreement. ex: Open

Control Data:

 Verification level : ex F – Display total by payer/material

It how the information should be displayed or printed out for a Rebate Agreement.

 Check different Validity periods

It specifies whether condition Records within Rebate Agreement must have exactly the same validity period as a agreement itself.

Manual Accruals order type R4(B4):

Specify the sale doc type R4 when we perform manual posting of accruals for agreement.

Ex: when the ;business wants to put worth of certain amount of product as a front of store display then business pays 10000 then business has to post this 10000 as accruals, system automatically creates credit memo request of this document tpe(R4).

 Check “Manual Accruals”: Accruals this field if you want to post manual accruals for this agreement.

Manual Payment:

 Payment Procedure: A – Payment allowed up to accruals valid.

 Specify the value, if you want to allow manual payment for a Rebate Agreement To indicator specifies the amount which can be paid by using this indicator we can limit the manual payment to be the amount of accruals posted for each Rebate condition records when normal payment is carried out creation of credit memo. When system carried out final settlement all partial payments are taken into account.

 Partial Settlement : R3 (B3)

Specify order type that should be used when we perform costing settlement for the Rebate Agreement. Ex: Customer wants partial Settlement for the Rebate Agreement, then system uses this document type to settle the partial payment.

Note: That request must be approved before creating the credit memo.

Prerequisite: Make sure that in VOV8 R3(B3) the Billing type field contains appropriate partial settlement value B3

 Check ‘Reverse Accruals’

Check this field when we want accruals to be reversed when manual payment be made for Rebate Agreement.

Use: System reverses the Accruals for the amount for manual payment. I the Cumulative Accruals are not sufficient then the system Reverse the accrual amount to which that system.

Settlement : Final Settlement’ – B1

Specify the Sales doc type that system uses as a default when final Settlement Takes places.

 Correction : B2

Specify doc type B2 the System automatically uses to convert the Value. Ex: Sales Volume on which Rebates is based. If the business has to create a condition record with staring date that is in the past, then the system needs to adjust the sales revenue of the customer, then system has to take the invoice that were processed but the retroactive starting date of the condition record and the actual date on which we enter the Rebate Agreement.

Minimum Status: B – Agreement released for settlement

It specifies the minimum status that Rebate Agreement must have before the settlement an be calculated by default it B

 Save it, and Exit

Activate Rebate Procedure infrastructure : (S136):

To update daily sales orders with synchronize updating.

Path Img  Logistic general  LIS  Logistics date warehousing  Updating  updating Control  Activate update  S&D  S136

Double click on S136 and select ‘Synchronous updating’ in pop up box

 Save it

 Double Click ‘SD60’ , Select ‘Day’ & with ‘Synchronous updating’ in pop up box

 Save it

• Go to OVA2 Assign sales document types B, B1,B2,R3,R4 to sales Area

• Go to VA01, VL01N,VF01raise the sales order billing doc for 2 times and note down the ‘document numbers’.

• VA01: Go to Price condition screen & check rebate condition type Boo2 has been activated or not.

• Go to Change mode of the Rebate agreement(VB02). Note down the message as system unable to update sales volume in the Rebate agreement we have to run the program SDBONT06 in SE38 Transaction Code. Click on Execute(F8) maintain Selection screen like Rebate Agreement number Rebate Receipient number, Sales Area, & check to error, check drill out, uncheck test, check changed agreement, click on execute

rewards if it helps

siva