The document discusses credit management functionality in SAP including simple and automatic credit checks. Simple credit checks compare the credit exposure to the credit limit while automatic checks consider additional factors like open documents and a time horizon. The document provides details on configuring credit control areas, risk categories, and other settings to enable credit management features in SAP.
The document discusses credit management functionality in SAP including simple and automatic credit checks. Simple credit checks compare the credit exposure to the credit limit while automatic checks consider additional factors like open documents and a time horizon. The document provides details on configuring credit control areas, risk categories, and other settings to enable credit management features in SAP.
The document discusses credit management functionality in SAP including simple and automatic credit checks. Simple credit checks compare the credit exposure to the credit limit while automatic checks consider additional factors like open documents and a time horizon. The document provides details on configuring credit control areas, risk categories, and other settings to enable credit management features in SAP.
The document discusses credit management functionality in SAP including simple and automatic credit checks. Simple credit checks compare the credit exposure to the credit limit while automatic checks consider additional factors like open documents and a time horizon. The document provides details on configuring credit control areas, risk categories, and other settings to enable credit management features in SAP.
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Credit Management
In SAP there are some checks available to carryout credit checks for particular customer as credit sales is common to every business. When the credit sales granted for the particular customer, monitoring the credit history of a particular customer is essential with every transaction. SAP has provided two kinds of credit checks to carryout credit management functions: (1) Simple credit check (2) Automatic credit check Simple credit check: In simple credit check the system compares the credit exposure with payers credit limit. The credit exposure results from the total of the net document value and the value of the open items. We can set the following system responses at when the credit limit has been reached. A –Warning message B – Error message C – Delivery block Specify in VOV8 Credit limit [C] Configuration settings: Sales documents types – Credit limit check: Transaction code: OVAK
Define credit control area: Transaction code: OB45
Credit control area is an organizational unit that specifies and checks the credit limit for customers. A credit control area can include one or more company codes. It means we can assign one credit control area to number of company codes. NOTE: Within credit control area the credit limit must be specified in the same currency.
Data for updating SD fields
Update [000012]: Open order value on time axis, delivery and billing document value. This field value controls when the values are open sales orders, deliveries, billing documents are updated in LIS. We can specify the following update groups for updating credit related statistics. Update group 000012: Sales order: Increase open order value from delivery relevant schedule lines. Delivery: Reduces open order value from delivery relevant schedule lines. Increases open delivery value Billing document: Reduces the open delivery value, increases open billing document value. Financial accounting document: Reduces open billing document value Increases open items. Update group 000015: Delivery: Increases open delivery value. Increases open billing document value. Financial accounting document: Reduces open billing document value Increases open items. Update group 000018: Sales order: Increases open delivery value Billing document: Reduces open delivery value. Increases open billing document value. Financial accounting document: Reduces open billing document value. Increases open items. Fiscal year variant [K4]: It indicates specific fiscal year variant for particular credit control area. The fiscal year variant is essential when a credit control area covers multiple company codes whose fiscal years are different. Then the values of the open orders are updated by posting period. Specify risk category [001]: 001 = High risk 002 = Medium risk 003 = Low risk This risk category entered in the related control area of the customer’s credit master record, which is automatically created when a customer is created in a company code. The credit master record is automatically maintained when at least one of the below fields is maintained for the corresponding control area. (A) Risk category (B) Credit representative group (C) Credit limit Credit limit: The credit limit that we enter here in the specific credit control area of the customer’s credit master record. This is automatically created when a customer is created in a company code (in XD01). NOTE: This credit limit is not a total credit limit for the control area. Representative group [001]: Define credit representative group in IMG. All company codes: If we want to tell to the system that, this credit control area is permitted for postings in every company code we have defined. Save and Exit NOTE: After this create Risk categories and Credit representative groups and come back to this step and assign these values to our credit control area. Risk category and Representative group defined and maintained by FI/CO consultants in IMG.
Assign company code to credit control area: Transaction code: OB38
Go to FD32 and check whether system created customer’s credit master data automatically or not. System creates customers credit master data automatically when we (FI/CO) people) configure credit control area in IMG. So as to perform simple credit check we have to specify customer master payers limit in the credit control area, and create customer master in XD01 transaction code. Specify reconciliation account number (GL account number) Payment history record: Check payment history record control in payment transaction tab. It is the control parameter to update the payment details that are made by customers and system will show the payment details in the FD32. Specify the credit control area in credit control area field in billing document tab. Save and Exit Go to VA01 and raise the sales order Check the system responses in each and every level of sales document processing and check whether the system blocked the delivery document (due to the setting in VOV8 of OR in check credit limit field [C] = Blocked for delivery). To release the delivery go to VKM4 and release the delivery document. Automatic credit check We can configure credit related management functions that are to be carried out by the system automatically. System automatically carries out credit related management functions by taking some factors into consideration. In automatic credit related functions system gets the credit exposure of a particular payer by taking factors like: (1) Open sales orders (that are raised, yet to pass to delivery process) + (2) Open delivery documents (that are raised, yet to pass to PGI) + (3) Open PGI documents (that are PGI process done, and yet to pass to billing document) + (4) Open billing documents (that are raised, but yet to pass to accounting (FI) + (5) Attachment/Time/Horizon period. Ex: 2 Months. Horizon period: It is the period in which system will take the above sited all open documents into consideration that falls during this period. This time period only applies for dynamic check. It will not be applied for static. As in automatic credit check SAP provides Dynamic and Static methods.
Configuration steps: Define credit control area: Transaction code: OB45
Assign permitted credit control area to company code
NOTE: Definition and assignment takes place in single step. Here we can assign ‘N’ number of credit control areas to one company code.
NOTE: If our client has different business areas, we can assign each business area with credit control area. Ex: 0001 for business area ‘A’. 0002 for business area ‘B’. 0003 for business area ‘C’. In this case the same customer master record can have different credit limits for different business areas. Define risk categories: Transaction code: OB01
NOTE: Definition and assignment takes place in one step.
Define preliminary settings for credit management
Define text IDs for credit management: Transaction code: OBT3
Maintain text IDs for central text in credit management: Transaction code: OBT3Z In this context central means that the texts are independent of a credit control area.
Define credit limit check by delivery order: Transaction code: OVAD
Define credit limit check by item category: Transaction code: OVA7
Define credit groups: Transaction code: OVA6
We can define credit groups so as to group together different business transactions in the same manner to carryout credit check. NOTE: Use standard credit groups: 01 = Credit group for sales order 02 = Credit group for delivery 03 = Credit group for goods issue (PGI)
Here we define whether system has to carryout Dynamic or Static.
NOTE: In VOV8 of OR check credit limit field must be [D] = Automatic
System carryout automatic credit check based on the credit control area, risk category and credit group. Automatic credit check steps Customer master should have been created by using transaction code XD01 In VOV8 of OR check credit limit field must be [D] = Automatic FD32 should have been created and credit limit should have been specified/maintain (When we define the credit control area system automatically creates FD32) In VOV8 of OR we should specify the credit checking method as: Simple, Static, Dynamic, Document value, etc. Go to VA01 and raise the sales order. Check the system statuses regarding credit check Go to VL01N and check the system status, whether the system blocked the delivery or not So as to release the blocked document go to VKM4 Maintain the selection criteria Click on execute icon Select the document Click on release icon Save and Exit Go to VL01N and raise the delivery process Go to VF01 raise the invoice
