Static Credit Checks - Open orders - Confirmed quantity vs total quantity

[former_member187506]

We are using static credit checks. Credit currently only sees open orders with a confirmed quanitity.

Customer orders 10 items we have 5 in stock. Credit check runs, credit is evaluated basd on the confirmed open quanitity of 5. The order gets a credit block. Credit rep releases the order.

A few days later the balance of the order arrives in the warehouse. The remaining 5 are confirmed on the order. Since the confirmed quantity has been increased and subsequently the confirmed open value, the order goes back to credit.

We frequently encounter this situatuion and are looking for ways to reduce the number of credit round trips.

If we wanted to base the credit check on the total quantity / order value, as opposed to the confirmed quantity / value what do we need to change.

Insights are appreciated.

Edited by: tooCann on May 14, 2008 2:30 PM

Edited by: tooCann on May 14, 2008 2:31 PM

[former_member217082 · Accepted solution]

Hi cann

As you are going with static credit checks, system will check the order and if it exceeds it will throw an message (error , warning )

Now again , if you create another sales order , that value will not be taken into consideration , system again will check for the credit limit amount

For example :

credit limit - 10000

sales orders - 1010, 1011

1010 sales order value - 11000

1011 sales order value - 10500

Now when you create a sales order system will check the credit limit 10000. and once you save it and create another sales order (1011), again system will check for the same credit limit 10000.

The credit limit gets reset once the order is saved ,in static check

Now any open quantities are there means and when it gets confirmed then system will check for those open quantity also

To minimize all these use dynamic credit check

Regards

Srinath

[former_member187506 · Accepted solution]

Thanks for the reply.

Maybe I wasn't clear. My question revolves around what quantities are checked when when an order is created.

We are looking to have the total quantity on the open order be included, not just the confirmed quantity. The current process, and I suspect the standard check only includes confirmed quanities. The drawback is that orders may hit credit several times before the order is complete.

If the quanity / value seen in credit was the total order quantity rather than the confirmed quantity the check would not need to be executed again unless total quantites changed.

Thanks

[former_member217082 · Accepted solution]

Hi cann

System checks only for the confirmed qty. If any open qty is there by which credit limit is exceeding , then the open orders wont be passed to the production consultants until the credit limit is released (VKM1).As the availability check doesn't happen

Regards

Srinath

[former_member187506 · Accepted solution]

I understand it checks for confirmed quantities. I am interested in understanding what controls are available to affect the quantities the credit check defines as "open".

Thanks

Edited by: tooCann on May 14, 2008 3:08 PM

[Former Member · Accepted solution]

Dear Toocann,

You will have to go for Dynamic credit check if you want to consider the entire sales order quantity.

The problem for you is a requirement with my client. They want credit check only for confirmed quantity now.

I have configured the Static credit check but the problem is that when it gets blocked for the confirmed quantity and i release it using VKM3, the confirmed quantity in the order is becoming zero.

Can you pls guide?

Regards

Abhilash

[vijaysureyen_ap82]

Please tell me the proper difference between Open order vs open order with confirmed quantity ?.........

[vijaysureyen_ap82]

what is the difference between open orders & open order with confirmed quantity

[Former Member]

Hi, tooCann.

Please try to check sapnote 100861.

Hope this helps.

Adriano Cardoso

[Former Member]

HI guys

In static credit check credit limit is 50,000.

If sales amount is 67,000 and open items exceeds does order show credit hold.

pls help me

Regards

[former_member187506]

It better, otherwise what's the point of checking credit.