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Former Member

Automatic Credit check - Considering open Items & payment terms due

We have a business requirement , the credit check has to consider  only open items + payment Due (Considering Payment terms + 1 month)

  • The open items represent documents that have been forwarded to accounting but are not yet settled by the customer
  • Payment terms  30 Days  + 1 Month

Ex: Credit limit of 10000 INR is set to the customer  & Payment terms is 30 Days + 1 Month 

1 case : sales order is raised for  11000 the system will perform a credit check, based on  exceeding credit limit

2 Case :

First  Sales order is raised for 3000 INR , on  28 - 10 - 2015 , followed by Delivery& Invoice  - which is into open item .

second  sales order is raised  for  2000 INR  0n  26 - 12 - 2015 , though the credit limit is available  based on  payment term due the system  has to perform credit check , which is 30 days + 1 Month

Can  any one guide me how to meet the  above requirement

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2 Answers

  • Oct 28, 2015 at 02:03 PM

    Probably would like to rephrase the requirement a bit to make it clearer to understand.

    From case 1 I assume that you still wish to keep credit limit check - does it apply for both cases or it should be valid only for some customers?

    In case you wish to have credit limit check only for some customers you will need at least 2 credit risk categories in a standard system, so that you can have different settings in OVA8 for the same documents.

    Regarding consideration of open items - you can explore number of days for open items setting in OVA8. It is performed against the already available open items, which do not have a special g/l indicator not relevant for credit (FBKP transaction).

    Your client may be also interested in overdue items check in addition to open items check (most companies do) and there is a way to define the number of 'grace days' for overdue items if this is allowed by the company policy.

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    • Former Member

      Hi veselina ,

      well  , the credit limit check will be applicable for all customers considering  open items check  + payment terms with grace period of 1 month .

  • Oct 28, 2015 at 02:25 PM

    Hello Jerry,

    If the requirement for adding 1 month to existing Payment Terms is for all or some of the Customers, why not create a new 30 Payment Term with 1 Month as Additional Month (under Baseline Date Calculation).

    Further consideration of Open Item is pretty standard seting and you just need to activate the same in OVA8 along with reaction and Status/Block setting.

    Thanks,

    Jignesh Mehta

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    • Former Member

      Hi Jignesh ,

      The requirement  for adding 1 month  grace  period to the existing payment term is for all customers .

        the business doesn't want to  add a new payment term with 1 month under baseline date calculation

      what should we consider in the update group for considering only open item .