Skip to Content
0
Former Member
Sep 05, 2007 at 12:22 PM

Sales Order released even though Credit limit exceeded

3251 Views

Hi,

I have got a scenario where a Sales order has been approved by the system and subsequently Delivery,Invoicing has taken place even though the credit limit of the Customer has exceeded.For example this Sales order has a Value of $15800 where as the Customer has a Credit limit of $5000.

The Over all credit status in the Document header is showing as Approved with Value "A"--Document checked and OK

I have checked the Credit Check settings in automatic Credit control where the check is done on Maximum Document value for this Customer based on a combination of Credit control area,Risk Category and credit group,there is no static or dynamic check activated

The sales document type OR is set to "D" Automatic credit control.Under automatic credit control settings the check is on maximum document value which is shown as 0.01.

The Customer has a credit limit of $5000 and he has some past outstandings of $5350. .The system blocked the delivery of Sales order line item of Value $15800 as this exceeded his credit limit,subsequently the customer has paid $5000 towards his old outstandings and the sales order item of Value $15800 has been delivered and billed.The Customer is having payment terms 1.5% 15days,30 days net.

In this case Credit department has not released this order.If they had released the over all credit status in the document header would be released with Value "D"

I have checked the Credit Check settings in automatic Credit control where the check is done on Maximum Document value for this Customer based on a combination of Credit control area,Risk Category and credit group,there is no static or dynamic check activated.

What couldbe the reasons as to approval of Sales order by the system even after exceeding Credit limit????

Thanks

Mohammed Roshan