Credit Check for Consignment fill up

[Former Member]

Hi All,

Global Design has no credit check on the fill-up but rather on issue.

we need to have a credit check on the consignment fill up.

I trying to find some user exit where we can introduce credit check for consignment fill up but no success.

Thanks in advance.

Regards,

Gaurav Mittal

[former_member184555]

Hi Frank,

Thanks for that information. Though I am aware that standard doesn't have this functionality, I am not aware that it cannot be done and also did never check this note.

But, practically it sounds reasonable to have credit check for consignment fillup also. Though the ownership is lying with the company, there is no control over the stocks physically. Suddenly if the customer consumes all the material, the company cannot do anything except performing consignment issue. It is very difficult and also not advisable to apply human judgement for the credit worthiness while doing the consignment fillup.

I am looking forward for the comments of the members on this issue of whether credit check is useful for consignment fillup or not.

Thanks,

Ravi

[Lakshmipathi]

Dear Ravi

I also go by Franck that for consignment fillup, credit check is not necessary.

From my point of view, you only appoint a warehouse agent and you stock your material in that warehouse only. So for moving from a manufacturing plant to your authorised warehouse, why you feel, credit check is necessary.

Also on your comments "there is no control over the stocks physically", definitely, there should be some control due to the fact, the warehouse agent just like that cannot pull out the stock to end customer and there should be some documentation like ASN reference for that.

thanks

G. Lakshmipathi

[Former Member]

Hi Ravi & Lakshmipathi,

Actually I read again the note and it does not say the credit control is not checked, it only say the sales order value is not updated, so maybe the basic check is working, but with no credit update. Therefore my first post was not correct.

I guess the solution is to activate it in the system and try!

In that case that would be a business decision to activate credit check for the consignment item category (which is good as we would get more flexibility).

Best Regards,

Franck

[former_member184555]

Hi

In the item categories of consignment (KBN, KEN) check(tick) the field CREDIT ACTIVE and check if it is working.

Thanks,

Ravi

[Former Member]

Ravi,

It will not work => This is the standard system response.

Check OSS Note 492831 - Consignment and credit management

You create a consignment fill-up (order type KB).* Although the "credit active" indicator (TVAP-CMPNT) is set in the item category, no open sales order values (S066-OEIKW) are updated*.
The credit checks for the consignment fill-up are carried out according to the Customizing settings. However, no delta value is calculated for the document during the static and the dynamic credit limit check. Because of this, the consumption is not increased by the credit value of the document during the limit check.
This is the standard behavior in the SAP R/3 system. The consignment fill-up has a delivery as result, but is not relevant for billing. No credit values are therefore set up in the order, since they would not be deconstructed again later.
That means that the updating for the S066 table is not triggered due to the consignment fill-up, and no open sales order value (S066-OIEKW) is created.
The updating of the open sales order values begins in the consignment process with the creation of the consignment issue. This is then delivered to and billed, so that the open credit values are transferred as usual with these steps (compare Note 377165).

Solution for Gaurav: None needed, when sending goods as a consignment fill-up, they are still yours, so you can get them back whenever you want (if they have not already being consumed by the customer of course).

Business solution: Do a proactive credit watching on your consignment customers (using external credit watch companies); stop doing consignment when you feel these customers suppose a credit risk.

Regards,

Franck