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credit mngt

Hello SAP Gurus,

1.What is risk category.

2.What is credit group?

3.What is automatic credit control?

4.What is the diff between Simple credit check and automatic credit check?

Former Member
Former Member replied

<b>Risk Category </b>:In order to classify customers according to the risk they represent

and to trigger the relevant checks, you can assign a risk category to a customer. This risk category determines which checks the system should carry out when processing orders in Sales and Distribution.

<b>credit group</b>

<b>Allows you to combine different sales document types for the credit limit check

Automatic Credit Controls in SD</b>

You can specify automatic credit checks to meet your own credit management needs. The

checks can be carried out at various times during the sales order cycle, from order receipt to

delivery.

Within delivery processing, you can further specify that a credit check is carried out when a

Difference Between Simple and Automatic Credit Check Types

Explain in detail difference between simple and automatic credit check types. In automatic check, difference between static and dynamic checks.

SIMPLE CREDIT CHECK : Tr.Code - FD32

It Considers the Doc.Value + Open Items.

Doc.Value : Sales Order Has been saved but not delivered

Open Item : Sales Order has been saved , Delivered, Billed & Transfered to FI, but not received the payment from the customer.

Eg: Customer Credit Limit is Rs.1,00,000/-

Suppose Doc.Value + Open Item Value is Rs.1,10,000/-

Here credit limit exceeds then system reacts.

Options : A) Warning Message

B) Error Message (Sales Order won't be saved)

C) Error Message with Delivery Block

AUTOMATIC CREDIT CHECK : Give extra credit facilities to the particular customer.

STATIC CREDIT LIMIT DETERMINATION :Checking Group + Risk Catageory + Credit Control Area.

A) Credit Checking Groups : Types of Checking Groups.

01) Sales

02) Deliveries

03) Goods Issue

At all the above 3 levels orders can be blocked.

B) Risk Catageory : Based on the risk catageories company decide how much credit has to give to the customer.

HIGH RISK (0001) : LOW CREDIT

LOW RISK (0002) : MORE CREDIT

MEDIUM RISK(0003) : Average Credit

Static Credit Check it checks all these doc value & check with the credit limit

1) Open Doc.Value / Sales Order Value : Which is save but not delievered

2) Open Delivery Doc.Value : Which is delivered but not billed

3) Open Billing Doc.Value : Which is billed but not posted to FI

4) Open Item : Which is transfered to FI but not received from the customer.

DYNAMIC CREDIT CHECK : 1) Open Doc

2) Open Delivery

3) Open Billing

4) Open Items

5) Horizon Period = Eg.3Months

Here the System will not consider the above 1,2,3& 4 values for the lost 3 months

Then assign the Sales Doc & Del Documents.

Sales Doc.Type(OR) + credit Check(0) + Credit Group (01)

Credit Limit Check for Delivery Type : Del.Type (LF) + Del Credit

Group (02) + Goods Issue Credit Group (03)

delivery is created or when goods are issued. You specify data for automated credit control in

Customizing for Sales and Distribution. For detailed information about how to enter this data, see

the SD Implementation Guide.

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