Skip to Content
avatar image
Former Member

Customer Credit limit check

Hi Friends,

I have to configure credit management function at sales order level. My requirement is to check credit limit of customer at sales order creation stage. When the sales order is created, the customer credit limit needs to be checked with the customer account balance + net value of outstanding sales orders of that customer.

Can some one provide the detail step-by-step approach to configure the above process? Your support at this time is highly appreciated.

Thanks in Advance,

Ramindu

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

2 Answers

  • Best Answer
    avatar image
    Former Member
    Dec 19, 2008 at 04:03 AM

    Hi

    How To Do Configuration For Credit Management

    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

    The exact configuration.

    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.

    Regards

    Raja

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Dec 19, 2008 at 03:55 AM

    Dear Ramindu,

    Configuration steps for Credit Management

    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.

    Difference Between Simple and Automatic Credit Check Types

    In automatic check, difference between static and dynamic checks.

    SIMPLE CREDIT CHECK : Tr.Code - FD32

    It Considers the Doc.Value + Open Items.

    Doc.Value : Sales Order Has been saved but not delivered

    Open Item : Sales Order has been saved , Delivered, Billed & Transfered to FI, but not received the payment from the customer.

    Eg: Customer Credit Limit is Rs.1,00,000/-

    Suppose Doc.Value + Open Item Value is Rs.1,10,000/-

    Here credit limit exceeds then system reacts.

    Options : A) Warning Message B) Error Message (Sales Order won't be saved) C) Error Message with Delivery Block

    AUTOMATIC CREDIT CHECK : Give extra credit facilities to the particular customer.

    STATIC CREDIT LIMIT DETERMINATION :Checking Group + Risk Catageory + Credit Control Area.

    A) Credit Checking Groups : Types of Checking Groups.

    1) Sales

    2) Deliveries

    3) Goods Issue

    At all the above 3 levels orders can be blocked.

    B) Risk Catageory : Based on the risk catageories company decide how much credit has to give to the customer.

    HIGH RISK (0001) :

    LOW CREDIT LOW RISK (0002) :

    MORE CREDIT MEDIUM RISK(0003) : Average Credit

    Static Credit Check it checks all these doc value & check with the credit limit

    1) Open Doc.Value / Sales Order Value : Which is save but not delievered

    2) Open Delivery Doc.Value : Which is delivered but not billed

    3) Open Billing Doc.Value : Which is billed but not posted to FI

    4) Open Item : Which is transfered to FI but not received from the customer.

    DYNAMIC CREDIT CHECK :

    1) Open Doc

    2) Open Delivery

    3) Open Billing

    4) Open Items

    5) Horizon Period = Eg.3Months

    Here the System will not consider the above 1,2,3& 4 values for the lost 3 months

    Then assign the Sales Doc

    Sales Doc.Type(OR) + credit Check(0) + Credit Group (01)

    I hope this will help you,

    Regards,

    Murali.

    Edited by: Murali Mohan.Tallapaneni on Dec 19, 2008 4:56 AM

    Add comment
    10|10000 characters needed characters exceeded