Credit management

[Former Member]

Hi Gurus,

In FD-32 we maintain the credit limit of the customer. But without maintaining credit limit in FD32 can we moniter the credit check of the customer? if so how what configuration is needed for that?

Thanks for your response.

Sunanda

[Former Member · Accepted solution]

hi,

From the Credit Management screen, choose Master data - Display.

By choosing Extras and Environment, you can display a customer’s payment data, dunning data, and view the payment history.

Choose the views Overview and Status and choose Enter.

On the Customer Credit Management Display: Overview screen, the system displays the individual credit limit, the existing total liabilities, and the credit limit used (percentage).

The Day Sales Outstanding (DSO) figure is also displayed. The DSO figure is an index of the relationship between outstanding receivables and sales achieved over a given period. In the standard system, this figure is calculated by taking into account current receivables, and a period of 3 months plus the days of the current month. When displaying the credit management data for a given customer, the basis on which the DSO figure is calculated can be viewed by choosing Extras - DSO calculation.

In Customizing for Financial Accounting, you can define other parameters by which DSO is calculated. You do so in the activity Define Preliminary Settings for Credit Management.

If you have recorded the customer’s payment history (see the indicator Rec.pmnt hist. indicator under Payment transactions view in the customer master record) or made other internal specifications, this data is also displayed here.

Choose Enter. The system displays the Customer Credit Management Change: Status screen

on which the following data is displayed:

- Receivables from sales (unless they are marked as disputed items)

- Special liabilities relating to special G/L transactions which you marked as credit limit-relevant (down payments for example)

- Sales value

By choosing Extras - Sales value you can break the sales value down into open orders, open deliveries and open billing documents.

- Credit exposure

When you post a customer invoice or create a billing document, the system automatically adds the amount to the existing receivables or to the receivables from special G/L transactions. When you post the incoming payment, the amount is subtracted from current receivables.

regards,

Siddharth.

[Former Member · Accepted solution]

Hi Siddhardh,

Thanks onceagain for your response.

Sunanda.P

[Former Member]

This can be given only for new customers. In define credit control area you can given the value.

Once you give there the value will automatically go to the new customers.

Nithin.

[Former Member]

Hi sunanda

u can maintain credit limit check without maintain FD32 also but u can only maintain Simple Credit Limit Check only even that limit also will be retrieve from the Credit Control Area Default Data for New customers Tab, there how much credit limit u r going to maintain for new customers other words u can say whoever not maintained FD32 that customers only

regards

srinivas

[Former Member]

Hi, cedit limit is imp for the credit record for the customer.

[Former Member]

CREDIT MANAGEMENT –

Most transactions in SAP enable customers a time period in which to pay their due amounts. These time periods are shown via the ‘Payment Terms’ as assigned to the customer master record. If a customer fails to pay the outstanding amounts by the end of his allowed payment term, it would be considered as a breach of the agreement and the company will govern his allowed credit limit more closely in future.

In order to manage these situations, SAP provides set credit limits per customer (FD32) as well as maintenance of the system responses in case a customers credit limit is exceeded.

Customers Credit Limit = permitted limit of the value of open items such as invoices not yet paid + value of open sales orders.

The configuration of what has to be taken into account during credit check is carried out in SPRO.

But, to do the credit check a credit limit for each customer is mandatory............which is given at FD32 manually entirely on customer discretion taking his payment history into consideration.

REWARD POINTS IF HELPFUL

Regards

Sai

[Former Member]

Hi Sunanda,

Try doing it in SPRO in the following path.

Img - S & D - Basic Functions - Credit Management/Risk Management - Credit management - Define Automatic Credit Control - Here in the details check the Check Box "Document Value" and maintain the amount above which you want to restrict the Sold to Party to raise an Order in the Column "Max. Document Value"

Regards,

Sudarshan

[Former Member]

Hi Sudarsan,

Thanks for your good answer.

Sunanda.P.

[Former Member]

Hi,

without credit check, SAP can not automaticaly perform the credit check.

For this it will be a manual job to maintain the creadit limit outside SAP. check for open orders, Open line items and so many things...

Not suggested at all.

Regards,

Amrish Purohit