Risk Category in FD32

[Former Member]

What is the significance of the risk category in credit management. I know that it is maintained in OB01, but will the block mechanism in SO/DO/Billing still functional even if I didn't maintain risk category in FD32?

Best regards,

zarah

[Former Member · Accepted solution]

hi,

According to your credit policy, you define risk categories and assign them to individual customers, along with specific credit limits. The credit risk category controls all credit checks for the customer.

You can define a credit check for any valid combination of the following data:

Credit control area

Risk category (low risk,medium risk,high risk)

Document credit group

MCM

[Former Member]

the risk category is not mandatory. I can still do credit checks with or without the risk category.

[Former Member]

So meaning to say...without risk category, credit checks will not be able to be done? To do credit checks.... the risk category is a MANDATORY field in FD32?

[Former Member]

Yes Off course...

[Former Member]

Hi,

Risk category is the component of Automatic credit management.

If you want to perform a automatic credit management which is the outcome of CREDIT CONTROL AREARISK CATEGORYCREDIT GROUP.

with out this 3 components you can not perform autom,, credit management.

Risk category is defined in FI module as per the defination in FI module we SD team will use it to perform automatic credit check.

You can perform blocking of orders or deliveries even by using simple credit limit check that can assigned in sales document type by using tcode VOV8 in the Data of general control "check credit limit"

[Manoj_Mahajan78]

Zarah,

Risk category helps to segregate your customers as per their payment history etc.

It helps you to assign level of risks to different customers.

Regds

MM

[Former Member]

Hi,

Risk category can be used in Static and Dynamic credit check,where as we cannot use this in simple credit check.

Moreover risk category is helpful to the company to bifurcate type of customer and their credit returns.

Reward points if it helpful.

Regards,

Chandra

[Former Member]

Hi

Risk category : Risk level of the customers.. say high level risk, low level and medium level... this should be assigned to the customers in FD32...

Credit check (Automatic) will be done differently for the following three combinations..

1. Credit control area -

---

>

2. Risk Category -

---

> Assigned to Customer

3. Credit Group -

---

> Assigned SD documents (SO,Delivery, PGI)

Example :

credit conrol area : ZZZZ

Credit Group : 01 --- Sales order

02 --- Delivery

03 --- PGI

Risk Category 001 --- High Risk

002 --- Medium

003 --- Low

Now we can do the Credit check differntly at every level (Sales order, delivery, PGI) depends on the Risk category... By maintaining these combinations at OVA8

ZZZZ 01 001 - High risk sales order.

ZZZZ 01 002 - Medium risk sales order.

ZZZZ 01 003 - Low risk sales order.

ZZZZ 02 001 - High risk Delivery.

ZZZZ 02 001 - Medium risk Delivery.

ZZZZ 02 001 - Low risk Delivery.

ZZZZ 03 001 - High risk PGI

ZZZZ 03 001 - Medium risk PGI

ZZZZ 03 001 - Low risk PGI

Hope this will update you

reward point if helpfull

Muthu

[former_member183879]

Risk category is the classification of risk associated with dealing with teh customers in an organisation.

Based on the risk associated with each customer, we define the credit controls. For example there will be an order block, delivery block etc for a high risk category, while there can be only a warning for a low risk category customer.

Hope this helps.

Reward if this helps.

[Former Member]

Hi Zarah,

1)Risk Category

It helps to categorised the credit risk with respect to customer.

you can have multiple risk category depending on requirement.

2)Credit Gp.

It decides at which level you want to check the credit ?

Ex- sales order,dlv,or at Pgi level.

Depending on business requirement u define your credit policy.

(may be simple credit check or Automatic credit check.)

for Automatic you need to costomiged your credit control in OVA8 with respect to

CCAcredit gprisk catogory

In FD32 u use to give the respective credit limit.

hope this will helps to understand the fundamentals of Credit check.

(If your getting any specific error please elaborate?)

karnesh

[Former Member]

hi Zarah,

Significance of Risk Catagory:

1.The credit risk category will control all credit reviews.

2.It is used as a selection criterion for the credit data list.

FICO people maintain risk category according to company credit policy. Via the customer master record, you can allocate every customer to a credit risk category.

mcm