Deviation from Commitment Limit

[Former Member]

Good evening,

Working hard as usual.  Those cows won't milk themselves

I have a question regarding the Deviation from Commitment Limit alert.  I have a customer with:

• A Credit Limit of 10,053
• A Commitment Limit of 10,053
• A balance of 10,641.87
• No Deliveries balance
• No Orders balance

The customer is popping up on the Deviation from Commitment Limit alert.  This is fine, but there are some other figures I cannot explain.  The Alert detail reads:

BP Code: A001   Account Balance 10,641.87,   Payable Limit 3,535.95,   Maximum Deviation 7,105.92

Can you explain where the Payable Limit and Maximum Deviation figures come from?

All the best

Bob

[kothandaraman_nagarajan]

Hi,

If you got the answer, please close this thread by clicking correct/helpful answer.

Thanks & Regards,

Nagarajan

[nicet123]

Hi Bob,

The deviation amount for commitment limit is calculated as follows:

Balance + Undeposited checks (Post dated checks received) + Current Document amount - Commitment Limit amount.

Hope this will help.

Regards,

Nick

[Former Member]

Hi Bob,

For this system alert, it always looks your BP profile to find the number. Check what payment term and/or dunning term has been setup for this customer.

The formula should be Payable Limit = Account Balance - Maximum Deviation

Whenever the customer's Account Balance is over the Commitment Limit, the alert will be triggered. Those 2 other amounts may only be meaningful for certain accounting staff, it will make no difference for other users.

Thanks,

Gordon

[kothandaraman_nagarajan]

Hi Bob,

Better check with query (that triggers the alert) and same time,

please refer SAP notes:

898665  - Credit limit and Commitment limit

Thanks & Regards,

Nagarajan