CREDIT MANAGEMENT-scenario

[Former Member]

hi

How the system calculate credit limit in sales order. mean how it pickup the previuos vales and add with net doc value.

regards

murali

[Former Member · Accepted solution]

Hi Murali,

I would like to add few more points to Sam's reply.

The update of values depends upon the credit update rules you choose in your credit control area customization. There are 3 rules.... I already explained about those 3 update rules in this link to another member when he asked the same question.

Update group 000018 is for non-delivery relevant orders only (for example, services). When you create an order, SAP takes the order value and update the open delivery value with it. Since services do not require delivery or schedule lines, orders once created they updates the delivery structure with the order value = delivery value. When the order is billed, open delivery value is subtracted from the exposure and open billing is added to the exposure. When the billing post to accounting, open billing value is subtracted and open A/R value is added to the exposure. The exposure is finally reduced when the cash is applied against the open A/R.

000012 – This is available for delivery relevant orders only. On the event of new order creation, open order value is added to the exposure. When the order is delivered, open order value is subtracted from the exposure and open delivery value is added to the exposure. On billing the delivery, open delivery value is subtracted from the exposure and open billing value is added to exposure. When the billing post to accounting, open billing value is subtracted and open A/R value is added to the exposure. The exposure is finally reduced when the cash is applied against the open A/R.

000015 – Use this rule if you want SAP to calculate the exposure without considering the open sales order value. In this rule, when the order is delivered, open delivery value is added to the exposure. On billing the delivery, open delivery value is subtracted from the exposure and open billing value is added to exposure. When the billing post to accounting, open billing value is subtracted and open A/R value is added to the exposure. The exposure is finally reduced when the cash is applied against the open A/R.

Now when you create a sales order, these update rules updates 2 structures S066 & S067. S066 is for sales orders and S067 gets update with delivery and billing information. So in nutshell your 00012 update rule updates S066 & S067 both whereas 00015 & 00018 updates only S067. These update rules are setup by SAP in SIS structure to be updated as and when the documents are created.

When you create a sales order, SAP updates the CMPRE value as told by SAM into the respective structure. After that it calls a few function modules to read the value from these individual structures and adds them up on the basis of rules defined by 00012, 00015 and 00018. So if you know what and how update rules works, you can command on credit. I am not going in detail about the technical and function module aspect of credit management. Let me know if you would like me to go over that also.

Thanks

Kapil Sharma

[Former Member]

HI Murali

Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.

An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.

For example, if your credit management is centralized, you can define one credit control area for all of your company codes.

If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

Credit limits and credit exposure are managed at both credit control area and customer level. You set up credit control areas and other data related to credit management in Customizing for Financial Accounting. The implementation guide is under Enterprise Structure -> Definition or Assignment -> Financial Accounting and then Maintain credit control area. You assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record.

Settings for determining the credit control area of a document. The settings of items 1 - 4 are taken into account according to their priority. The credit control area found is stored in field VBAK-KKBER.

1. Transaction OB38

Check which credit control area is assigned to the company code.

Company code:

Credit control area:

2. Transaction OVFL

Check which credit control area is assigned to the sales area.

Sales area:

Credit control area:

3. Transaction XD02 or VD02

Check which credit control area is assigned to the payer.

Payer:

Credit control area:

4. Transaction SE37

Is user exit EXIT_SAPV45K_001 being used?

5. Transaction OBZK

For the settings under items 2 - 4, field "All company codes" must be marked in Transaction

OB45, or the credit control area must be entered under the relevant company code in table

T001CM of the credit control areas allowed.

Company code:

Credit control areas allowed:

6. Settings for the credit checks

7. Transaction OVAK

Which settings do exist for the sales document type used?

Sales document:

Check credit:

Credit group:

8. Transaction OVAD

Which settings do exist for the delivery type used?

Delivery type:

Credit group for delivery:

Credit group for goods issue:

9. Transaction OB01

Credit management/Change risk category

Definition of the risk category for each credit control area. This risk category can be

assigned to a credit account by using Transaction FD32.

10. Transaction OVA8

Here, the individual credit checks for key fields

o credit control area

o risk category

o credit group are set. Take these key fields from the above settings and go to the detail

screen. In particular, check whether fields "Reaction" and "Status/block" are set

correctly. To carry out follow-up actions in case of a credit block, the credit check

status must be set (field "Status/block").

11. Transaction FD32

Credit master data for the payer of the relevant document.

Credit account:

Credit limit:

Risk category:

Currency:

12. Settings for updating the credit values Update of the credit values is required for the limit

check (static or dynamic credit limit check).

13. Transaction OVA7

Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to

field "Active receivable" in Transaction VOV7.

Item type:

Active receivable:

14. Transaction V/08, Pricing

In the pricing procedure used for pricing, subtotal "A" must be entered in a line for

determining the credit value (mark the pricing procedure and doubleclick on "Control").

Usually, the net value plus taxes is used. This way the system is determined to use this

subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for

update and credit check.

You can find the used pricing procedure of the order under "Item -> Condition -> Analysis".

Pricing procedure:

Line with subtotal = 'A':

15. Transaction OB45

Which update group (field "Update") do you use in the relevant credit control area? The

default setting is "12". If you use another update group, check whether this is fine with

you. If you open an OSS message, please tell us the alternative update group.

Credit control area:

Update:

16. Transaction OMO1

Which kind of update did you choose for structure S066?

In any case, "Synchronous update (1)" has to be chosen as the kind of update.

All other settings will lead to errors.

Reward if useful to u

[Former Member]

hi kapil

i want for Simple Credit limit check.

please rectify

regards

murali

[Former Member]

A credit limit check can be carried out when sales documents are created

or changed. The check is carried out within one credit control area.

When changing a document, the check is repeated if changes regarding

quantity or value are made. A credit control area consists of one or

more company codes. A sales document belongs to one credit control area

depending on the allocation of the sales organization to a company code.

The SAP System checks the credit limit which was granted to the customer

in this <b>credit control area</b>. The credit control areas and the credit

limit of a customer are defined in financial accounting and entered in

the customer master record.

During the check, the SAP System totals the receivables, the open items from special G/L transactions and the net value of the sales order for every item of a sales document. The open items take into account obligations bound by contract which are not recorded for accounting purposes but which involve expenses through diverse business transactions. The total is compared with the credit

limit. If the limit is exceeded, the system responds in the way defined by you in the configuration menu.

See:

http://help.sap.com/saphelp_47x200/helpdata/en/93/743880546011d1a7020000e829fd11/frameset.htm

Message was edited by:

sam masker

[Former Member]

Hi Murali,

Even the simple credit check happens within a credit control area. Therefore, the updation still depends upon the update rule which you choose in credit control area customizing.

Now credit check options like dynamic, static and simple credit check are just to define the scope of credit checks.

Let's take an example...

Suppose you choose 00012 in your credit control area..... Now you have applied simple credit check A (run simple check with warning) for your sales document OR. Now since the update rule is 00012, the moment you create a new sales document and save it or increase/decrease the value for an existing sales order, SAP will take the order value or changed value and make the necessary updates in S066 structure. So suppose you created a new order for $500, the moment you save it, SAP will add $500 to S066.

Now being a simple credit check, SAP will pick up the open order value from S066 for this customer, open A/R value from accounting, Open Special GL receivables from accounting and then will compare the total of this with credit limit setup in the customer master.

Hope this clears the doubts....

Thanks

Kapil Sharma

[Former Member]

Kapil,

Appreciate your way of explanation....

Prase

[Former Member]

Hi Prashant,

Thanks a lot for your appreciation.

Hi Murali,

I hope your question is answered. If not, then please let us know your exact scenario so that any one of us can help you with your design.

Thanks

Kapil Sharma

[Former Member]

KOMP-CMPRE will be having the Item credit price.

In PP in subtotal field we will maintain the Subtotal field as 'A' i.e Carry over price to KOMP-CMPRE (credit price). so the current SO value will add with the old one.