Credit hold

[Former Member]

Hi,

Can somebody explain the difference between credit hold & credit block. My customer has not exceeded the credit limit but still he gets a credit hold.

How to solve the issue. A detail explanation, if possible will be appreciated.

[Former Member]

Hi

In most of the cases credit hold and block are interchangeably used.

According to me they can be differentiated as below:

Credit block is some thing which we have defined checks as part of business process of credit management to get the order on block. This is also referred as CREDIT REVIEW. Consider we define for a customer with risk category X and in OVA8 define credit check at sales order and if amount more than 5000 Dollars then order will go on block. This is a informed block put on order.

Now credit hold is something which has resulted a block on order or delivery other than above setting. Some scenarios can be:

1. The customer is being defaulted due to some credit reasons and hence block is put in customer master.

2. There is some problem with the credit card used on the order and hence order can be processed further. THis can be due to address being wrong, important info missing on order, credit card expired, fraud review etc. Generally this is offered as AUTH BLOCK.

Hope this helps u to understand thin line between block and hold.

Reward accordingly.

Kind Regards

Sandeep

[Former Member]

Hello,

One possible scenario:

In the holds, the docuemnt will be on hold based on ceartain conditions and the hold will be assigned to somebody (authorised) and the person can release the hold, after releasing the hold the document can be proceeded further. There can be many crieteria for assigning a hold, norammly it differs from company to company. Most of the cases the holds will be released from CRM and it will get updated in R/3. These types of modifications are done to give more control over the business.

Credit block can be achieved through config and we can release the document through VKM.

Prase