Risk Management - Payment Guarantees

[Former Member]

Hi all,

Everything I read about this subject tells me that if I have a Guarantee procedure assigned to a sales order and I enter a suitable Financial Document (FD) into my sales order then the value of the customers open orders will not be increased - but it is !!

I know that the FD is OK because as soon as I create a delivery, the order value is removed from the open order value.

Interestingly, if I then delete the delivery, the order value is NOT re-instated ....

If anyone can throw any light on this problem it would be appreciated. Thanks.

Brian

[Former Member]

I finally found the reason - there was a custom routine applied to the credit management check that set a variable that in turn forced the system to ignore any order with a Payment Guarantee Procedure.

[Former Member]

Hello Pathik, thanks for the info.

However, I have done all of that and my sales order determines a valid Guarantee Procedure.

As per my original message, the Finacial Document that I create matched the requirements of the Procedure because, as soon as the delivery is created, the system works as expected.

If a non-guaranteed order is processed then the value is added to open orders (S066) then moved, on delivery creation, to open deliveries (S067). With my guaranteed order, the value is still added to open orders in S066 but, when the delivery is created, the value is moved to Guaranteed Open Deliveries in S067.

If I then delete the delivery, the value is moved back to S066 but now to <i>Guaranteed</i> Open Orders.

Brian

[Former Member]

I realise that I can block the check with a routine but I do not want to do that as some of the orders (non-guaranteed) will need to be checked.

What I want is that the system behaves like it says on the box !!

[Former Member]

Thanks for the prompt responses - much appreciated. However, I do not believe that changing the update group will resolve the issue as we want the updates as per 000012 but only where there is no payment guarantee.

Here is the scenario :

1) Customer is granted a credit limit of 100.

2) He wants to order 120 so we ask for letter of credit.

3) We receive LoC, create in SAP and enter order with FD number inserted.

4) Order is credit blocked !! Even though it is guaranteed.

5) Plus, he has used 120% of his credit so:

6) When he now places an order for 20, that too is blocked but it should not be.

So we want non-guaranteed orders to be updated but not guaranteed orders.

Any other thoughts ??

Brian

[Former Member]

Dear Brian,

U can use Depreciation field in sales order.It means 50% of the order value should pick up from FD and Remaining 50% of the order value should pick up from Credit limit...(Or any ratio can be enter)..

OR

U can use the routine 903(Which by pass the credit check in at order,Although u have assigned update group 000012)....

The routine can b assigned in <b><b>Define automatic Credit Control</b></b> in the field NO credit check..

But this routine is not allowable in the Standard SAP system..It should be define ..

Regards

shafi

[Former Member]

Hi Brian,

This can be achieved through Payment guarantee Procedures and it is not only a guarantee procedure assigned to sales order.

Payment guarantee procedures are arrived at by a combination of Customer payment guarantee procedure and sales document payment guarantee procedure.

Since I dont have the T.code I will give you the menu path, IMG>Sales & Distribution>Basic Func>Credit Management/risk management>receivable risk management>Define and assign payment guarantee schema> You have five options here

in the first option you define the payment guarantee determination schema, it is here you define a payment guarantee procedure, after defining the schema select the schema and under the options of forms of payment guarantee(left hand margin) you set up the sequence of payment guarantee procedures(which are defined under t.code OVFD) - This sequence is answer to your question, but knowing this alone does not help. You also need to know

In the last/fifth option you define how is the payment guarantee defined in the first option determined for the sales order, it is evident that this determination uses the payment guaratee procedure of customer and payment guarantee procedure of sales document.

The other three options are where you define and assign document and customer payment guarantee procedures so that they are used in determination

Regards,

PATHIK

[former_member227476]

dear stanton

refer credit management

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

rewards if it helps

siva

[Former Member]

hi,

check the update groups in credit control area.

regards,

ramky