Differenct between Net Value and Document Value on a sales order

[Former Member]

Can someone please explain what is the difference between the Net Value that we see on the sales order (VA03) and the 'Document Value' thats checked against in Dynamic credit checking?

Thanks

[Former Member]

System arrives at the net value basing on Price minus possible discounts.

Net value for example does not include Tax and cash discounts.

You could look at your pricing procedure in IMG to see how system calculates Net price.

A credit check can only occur in three places: the sales order, the delivery, and the goods issue.

In transaction OVA8, you assign document value for each of these stages.

The sales order or delivery value may not exceed the specific value defined in the credit check.

For example let's say document value for sales order credit group is indicated as $100.00 (in transaction OVA8).

During sales order creation lets say system arrived at Net value of item as $104.00.

Then the sales order Net value exceeded document value assigned to credit control area, risk category and credit group.

[Former Member]

Thank you for your answers. How is the document value of a sales order that is going into a credit check, calculated?

The reason I ask is, i see a net value on the order, however, the order is by passing the credit checking (i have a Max Doc Value of $0.00 in OVA8) so this implies that the document value for credit checking is $0..

[Former Member]

In transaction FD32, you maintain credit limit for customer and assign risk category for the customer.

In transaction OVA8, there are two main types of checks - Static or Dynamic.

System checks the following for arriving at customers credit status-

Static credit check - It compares the credit limit assigned to the customer to the total value of open sales orders, plus the total value of open deliveries not yet invoiced, plus the total value of open billing documents not yet passed on to accounting, plus the total value of billing documents that have been passed on to accounting, but which have not yet been paid by the customer.

Dynamic credit check - It compares customeru2019s credit limit to the total of open sales orders not yet delivered, plus the total value of open deliveries not yet invoiced, plus the total value of open billing documents not yet passed onto accounting, plus the total value of billing documents that have been passed onto accounting, but which have not yet been paid by the customer. In addition you can use Horizon functionality also.

You can perform additional checks in addition to dynamic or static credit check. One of them is document value check.

If you check this box then a additional credit check is done when the maximum document value assigned is exceeded. This is useful if business requires that all sales orders above a certain limit are to be blocked.

In your case, the document value is $0.00.

So system is not doing any additional credit check.

It would just do Dynamic or Static credit check with relevant assignment maintained in transaction FD32 for the said customer.

[Former Member]

Have Credit Value(just a description and do not need condition type) in your pricing procedure in the end - which is total of net value plus tax . Sub Total should be A and Calc type is 4.

This sub total field is used to determine the credit value and then check the credit limit of the customer.

Rgds

Sai

[Lakshmipathi]

Dear Vicky

The field Document Value what you seen in OVA8 is that If you process orders for new customers whose credit limits have not been defined, the system carries out a credit check based on a maximum document value.

This type of credit check is useful specifically for new customers.

thanks

G. Lakshmipathi