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Creating a Division for Separate Material group

Former Member
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Dear all,

We are using 2 material groups (Johnson & Johnson , Henkel) in SAP.

Our Orgn structure looks like

Sales Orgn: 0000

Dis.Chn - 00 , 01

Division - 02,03

Credit Cntrol area - 0000

Presently i maintain the credit limit for a customer say 11 - Hospital for a single sales area 0000,00,02 which is operated by these 2 groups

The issues are

o   we cannot allocate the limit of AED100k in these 2 Groups and it results in loss of sale for any of them.

o   we cannot block the customer for any particular groups.

The Idea is to create 2 separate Divisions and  maintain the credit limit for the customers. If i accept that i have to change the entire structure in SAP which is a tedious work,

Is there any alternative to solve this issue apart from creating a division.

Your input is highly appreciable.

Regards,Satish





Accepted Solutions (1)

Accepted Solutions (1)

former_member182378
Active Contributor
0 Kudos

Creating new divisions for different material groups might not be the right way forward.

1. This would be a risk as the enterprise structure would grow more complicated exponentially.

The creation of new division might touch pricing, output; assignment of sales document types to sales areas, extension of CMRs etc.

2. How would credit management be controlled by creating new divisions?

You would have to create a new CCA too.

And, in FD32, the same CMR for new CCA and then the values of credit limit etc.

You could create a "Psudeo-Payer" for the CMR when it buys particular material group (Henkel etc.). For this payer you can maintain the credit limit.

In the sales order, the user would have to maintain the "Psudeo-Payer" manually.

Could you please explain why your client is interested for this requirement?

If in future, similar requirements come; going for new division would be RISKY....could you discuss the pros and cons with your client (about new division or its requirement)?

Former Member
0 Kudos

Hi Tw,

Thanks for your reply, Even i don't want to create a new division as i don't have many options i had to go with the creation.

Client is interested in this requirement:

As i had explained before

1. They cannot allocate the limit of  AED 100K in these 2 Groups and it results in loss of sale for any of them, say i maintain a credit limit for one of the customer and i have one sales man managing these 2 groups , when the credit exceeds 100K for one group , they cannot manage the sale for the other.

2. They cannot block the customer for any of the groups

I am sorry i cannot understand the benefits of adding pseudo payer to the customer for this reqt, say

my customer is 0000 - hospital and my payer is 0002 - Hos / DXB

I maintain the Credit limit for both 0000 and 0002 separately , how system is going to check the limit for those 2 group 's.

could you pls revert.

Regards,Satish


former_member182378
Active Contributor
0 Kudos

With your latest post, I am not understanding your business requirement clearly.

My understanding is as follows:

For customer 1000,

There should be a credit management which monitors customer 1000 for particular material group 00207.

Credit limit is 1000USD. And this is ONLY for customer 1000 and material group 00207 (MMRs included in this group are M-01, M-02)

If customer 1000 buys M-500, then the sales / billing value should not be considered in the (above mentioned) credit management (i.e. credit limit)

Is the above your requirement?

Former Member
0 Kudos

Hi TW,

Let me explain the requirement again.

My SAP Orgn structure is as one Sales Orgn: 0000

                                         2 Dis.Chn: 00 , 01

                                         2 Divisions: 02,03

                                         CCA: 0001

All major groups like Henkel , J& J are assigned in BASIC MATERIAL GROUP : MARA- MATKL 

Presently i maintain the credit limit for the customer based on the CCA  say 100 AED and when my customer buys a product belonging to the material Group J&J and the value exceeded 100 AED ,

the order goes for the block.

When my sales man tries to sell the product Henkel to the same customer, system could not create the order  for the same.

So the marketing / Finance dept wants to maintain the credit limit separately for these 2 groups

50 AED- J& J

50 AED- Henkel

so that my sales man need not worry about the credit limit problem for one group.

So i came up with a solution of creating 2 divisions after checking all the possibilities.

Hope the requirement is clear now,

PS:  i don't want to increase the credit limit for the customer,it should be 100 AED.

You have mentioned about pseudo payer , can you brief me on the same,

Kindly Revert.

Regards,Satish

Former Member
0 Kudos

Hi TW,

Let me explain the requirement again.

My SAP Orgn structure is as one Sales Orgn: 0000

                                         2 Dis.Chn: 00 , 01

                                         2 Divisions: 02,03

                                         CCA: 0001

All major groups like Henkel , J& J are assigned in BASIC MATERIAL GROUP : MARA- MATKL 

Presently i maintain the credit limit for the customer based on the CCA  say 100 AED and when my customer buys a product belonging to the material Group J&J and the value exceeded 100 AED ,

the order goes for the block.

When my sales man tries to sell the product Henkel to the same customer, system could not create the order  for the same.

So the marketing / Finance dept wants to maintain the credit limit separately for these 2 groups

50 AED- J& J

50 AED- Henkel

so that my sales man need not worry about the credit limit problem for one group.

So i came up with a solution of creating 2 divisions after checking all the possibilities.

Hope the requirement is clear now,

PS:  i don't want to increase the credit limit for the customer,it should be 100 AED.

You have mentioned about pseudo payer , can you brief me on the same,

Kindly Revert.

Regards,Satish

former_member182378
Active Contributor
0 Kudos

Thank you for the clear explanation!

The suggestion about "pseudo-payer" was as follows:

Customer 1000 (with partner function SP, PY, SH, BP)

Add another payer to this customer.

This additional payer is 5555

So, in XD03, button Sales Area Data, Tab Partner Functions:

SH 1000

PY 1000

PY 5555

BP 1000

SH 1000

For each payer a credit limit can be maintained in FD32

In sales order when user uses MATKL Henkel, then user should use PY 1000

but when user uses material with MATKL J&J, then user should use PY 5555

The allocation / selection of the respective payer can also be done by coding in userexit.

Former Member
0 Kudos

Thanks for the explaining the solution, but let us say if my salesman is serving 10000 Customers for J&J and Henkel , then i need to create 10000 payer and maintain a credit limit

I feel that this will be more difficult as the user has to select manually the payer at the time of creating the sales order.

Is there any better solution than this.

Kindly revert.

Answers (2)

Answers (2)

Former Member
0 Kudos

Hi,

    Instead of creating division you can create a Material pricing group and assign it in material master. After that through a User exit define the apportionments of credit limit for each Material pricing groups with you ABAPer's help. Try this and reply if you had any issue

Former Member
0 Kudos
Former Member
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Pls ready my message and then update, for the points don't reply

You are sending me how to maintain a credit limit or standard credit management which i don't want.

Regards,Satish

Former Member
0 Kudos

Dear satish

             pl dont say like this '' dont replay for points '' see no one is here for points menters main intense is to share knowledge

if given answer is not ok with u just ask any comments pl learn some human tips

all the best

Former Member
0 Kudos

Dear All / Muhammad,

Sorry if had hurted you all in my previous message / am sorry again venu.

Kindly provide me a solution, I am not looking for FD32 or standard credit Mgmt procedures /ship to party credit limit maintenance.

Pls go through my message and kindly reply.


Satish