Risk category in credit management

[Former Member]

Hi,

What is the role of risk category in credit management?

Regards

[former_member183879 · Accepted solution]

Risk category is used to categorise the customers for the credit. When the credit related masterdata is created in FD32, teh risk category is updated for the customer.

Once this is done, for the combination of Credit group(which indicates the transaction) and the Risk category, a Credit Management system can be enabled.

Hope this helps to understand the process.

Reward if this helps.

[Former Member]

Dear Mr Tiwari,

It adds an additional dimension to the flexibility of credit management.

Regards,

K Gopidas.

[Former Member]

Classification characteristic for customers with regard to the credit risk. The credit risk category controls all credit checks.

eg:high risk and low risk and medium risk

[Former Member]

Hi,

It enables the credit manager to classify customers according to commercial risk. Along with the document type, the risk category helps to determine which kind of credit check the system automatically carries out. For example, you may want to carry out stringent checks at order receipt for high risk customers, but waive a credit check for customers with a very strong payment history.

Regards

SD