excellent document on automatic credit check
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created by Sandeep Agarwal on Sep 7 2013 1139 AM last modified by Sandeep Agarwal on Jun 20 2014 822 PM
Introduction Credit management is the management of credit facility granted to customers as credit exposure allowedCredit facility is just like telling our customers that they need not pay immediately they can pay at a futurepoint of time after receiving the goods or services But this payment at a future point of time involves risk Soaccording to the risk foreseen the amount and time of credit (Credit Exposure) granted changes For somecustomers the risk perceived may be high such that we may demand payment in advanceThis credit management comes partially under preview of Sales and Distribution (SD) and partially of AccountReceivables (AR) Key challenge Reducing credit risk without hampering the supply chain Dealing with Bad Debt Before getting involved ask yourself
How do I react to a bad debtDo I block orders from important customers or do I grab a phoneWhat is the volume of blocked orders my FampA department can handleCan I afford to block customers (small customer base)What do I saveWhat is the cost in terms of damage
Credit Management in SAP Assuming that we already have SD and AR implemented credit management can be broadly used to
Assign credit limit to customersFacilities like the credit master sheet or early warning list help you monitor the customerrsquos credit situationAutomatic credit limit checks as well as to specify the points at which they have to be carried out
Automatically alert the credit representative of a customerrsquos critical credit situation as soon as orderprocessing starts and he may be able to check a customerrsquos credit situation quickly and reliably and in linewith the appropriate credit policy to decide whether the customer should be granted credit Credit Check Every customer is having a certain credit limit which is measured and maintained by Finance people Credit check isdone for each and every orderSD documents generatedCredit check is performed at the following stages of Sales order cycle Credit check settings present in eachSD document is responsible for interacting with FI module
Figure 1Stages of Credit CheckConfiguration Setting Define Risk Category
Configure and Customize SAP AutomaticCredit Management
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SPRO gt Financial Accounting gt Account Receivable and Accounts Payable gt Credit Management gt Credit ControlAccount gt Define Risk Categories
Figure 2Define Risk CategoryDefine Credit Control AreaSPRO gt Enterprise Structure gt Definition gt Financial Accounting gt Define Credit Control Area
Figure 3Define Credit Control Area
Figure 4Define Credit Control Area - Details The type of update chosen controls when the values of open sales orders deliveries and billing documents areupdated depending upon the type of document being generated One of the following update groups can bechosen as available in standard SAP
Blank ndash If the field is left blank the SD documents are ignored and only open receivables and open special GLitems are used for calculating credit exposure000012 ndash When a new order is created the open order value is added to the credit exposure When the order isdelivered the open order value is subtracted and the open delivery value added to the exposure On billing thedelivery open delivery value is subtracted and the open billing value is added to the exposure When billingposts to accounting the open billing value is subtracted and the open AR value added to the exposure Theexposure is finally reduced when the cash is applied against open AR000015 ndash Calculates exposure without considering open sales order value When the order is delivered theopen delivery value is added to exposure On billing the delivery open delivery value is subtracted and the openbilling value is added to the exposure When billing posts to accounting the open billing value is subtracted andthe open AR value added to the exposure The exposure is finally reduced when the cash is applied againstopen AR
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open AR00018 ndash This is relevant for non-delivery-relevant orders only When a new order is created the open deliveryvalue is added to the credit exposure When the order is billed the open delivery value is subtracted and theopen billing added to the exposure When billing posts to accounting the open billing value is subtracted andthe open AR value added to the exposure The exposure is finally reduced when the cash is applied againstopen AR
Note SAP recommends the use of update group 000012
Organizational Unit in Credit Management The organizational unit used in credit management is Credit Control Area It represents the area wherecustomer credit limits are specified and monitoredDepending on the relationship between credit control area and company code the credit management can becategorized as
Decentralized credit managementEvery company code has its own credit control area Hence we can define credit limits for acustomer separately for each company code This method delivers benefits such as the localpayment cultures can be respected each company code has the independence to make its owndecisions
Centralized credit managementMultiple company codes are clubbed under the same credit control area So if the customertransacts with company codes which are under the same credit control area the limit is set for allthe company codes combined together
If the currencies of these company codes are different from that of the credit control area the receivables areconverted to the credit control area currency to check with the credit limit set Centralized credit managementhas benefits such as easier analysis of credit policy and modifications required the focus is shifted to otherimportant areas such as bad debt reductions and improved customer relations as there is only a central creditteam that needs to be consulted irrespective of the geography etc
Figure 5 Organisational Unit in Credit Management
Assigning Company Codes to a Credit Control AreaSPRO gt Enterprise Structure gt Assignment gt Financial Accounting gt Assign Company Code to Credit ControlArea
Figure 6 Company Codes to Credit Control Area Assigning Sales Area to a Credit Control AreaSPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit Control
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SPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit ControlArea
Figure 7 Sales Area to Credit Control Area Define Credit GroupsSPRO gt Sales amp Distribution gt Basic Functions gt Credit Management and Risk Management gt CreditManagement gt Define Credit GroupsThe credit group specifies which subsequent transaction can be blocked for processing if the credit limits areexceededYou can use the default credit groups or create new once
Figure 8 Define Credit Groups Assigning Sales Documents and Delivery Documents to Credit GroupSPRO gt Sales and Distribution gt Basic Functions gt Credit ManagementRisk Management gt CreditManagement gt Assign Sales Documents and Delivery Documents gt Credit Limit Check for Order Types gtCredit Limit Check for Delivery Types
Figure 9 Credit Limit Check for Order Type
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Figure 10 Credit Limit check for Delivery Type Simple Credit Check Vs Automatic Credit Check
a High-volume low-value requires automation and efficient handling through grouping with as little personalhandling as possible (refuse orders as much as possible)
b Low-volume high-value requires individualization with emphasis on reporting and blocked orders or deliveriesthat can be checked and unblocked
Figure 11 Simple Credit Check Vs Automatic Credit Check
Simple Credit CheckThe simple credit check compares the payer customer master recordrsquos credit limit to the net document value plus thevalue of all open itemsIn case the value of the document and open items is more than the credit limit
System may respond with a warning message in the sales order [OR]Warning message and a delivery block [OR]Error message which will cause the document not to be saved
Automatic Credit Check Variations amp Recommended UseAutomatic Credit Check - Gives extra parameters to define credit checks like Credit Control Area Risk Category andhellip
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Figure 12 Automatic Credit Check Maintenance STATIC CREDIT LIMIT DETERMINATION
1 Open Sales Orders + Sales Order Value2 Open Delivery3 Open Billing4 Open Receivables
Recommended Use This is seen to be safer to use as compared to Dynamic Credit Check as it covers alldocuments due to varying business needs For high volume and very low risk customers (eg Risk Category001) it is good practice to put deliveries on block and leave the orders untouched This prevents a level ofcheck DYNAMIC CREDIT CHECK 1) 2) 3) 4) Above Mentioned 5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 monthsRecommended Use If the business is always likely to have fast moving items leaving no chances of Open OrdersOpen Deliveries etc for long time period this is good to use There can be other business considerations to includeonly Open items within certain period Maximum Document ValueThe sales order or delivery value may not exceed a specific value which is defined in the credit check Thevalue is stored in the currency of the credit control area This check is useful if the credit limit has not yet beendefined for a new customer It is initiated by a risk category which is defined specifically for new customersRecommended Use Use it for Credit Group 01 (Orders) and high risk category customers which you alwayswant to review beyond a particular value It may also be used for prepaid or one-time customer with Max docvalue Critical FieldsThis Credit check is initiated by document changes done in credit sensitive fields One such example is termsof payment When this field changes a check is done on the data in sales order against the data in thecustomer master
Date of Next ReviewSystem uses the date of the next credit review as a trigger for an automatic credit check If you process a sales orderafter a customers next review date has already gone by the system automatically carries out a credit check Overdue Open ItemsThe relation between open items which are more than a certain number of days overdue and the customer balancemay not exceed a certain percentage These values are defined in the customizing for automatic credit controlRecommended Use Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher riskcategory customers where you donrsquot want to have more than a certain of open items The values may be reducedwith increase in risk category values Oldest Open ItemThe oldest open item may not be more than a specified number of days overdueRecommended Use Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with StaticCredit Check for slightly Low-Medium risk category customers Maximum Number of Dunning Levels AllowedThe customers dunning level may only reach a specified maximum value exceeding which the item may be blocked ifso configured User-Defined Checks- For eg Cheque received from a customer bounced then subsequent orders may getblocked Credit Management at workFor each customer credit limits are specified in the particular credit master record If the customer exists in
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multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
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Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
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Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
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Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
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17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
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Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
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Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
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SPRO gt Financial Accounting gt Account Receivable and Accounts Payable gt Credit Management gt Credit ControlAccount gt Define Risk Categories
Figure 2Define Risk CategoryDefine Credit Control AreaSPRO gt Enterprise Structure gt Definition gt Financial Accounting gt Define Credit Control Area
Figure 3Define Credit Control Area
Figure 4Define Credit Control Area - Details The type of update chosen controls when the values of open sales orders deliveries and billing documents areupdated depending upon the type of document being generated One of the following update groups can bechosen as available in standard SAP
Blank ndash If the field is left blank the SD documents are ignored and only open receivables and open special GLitems are used for calculating credit exposure000012 ndash When a new order is created the open order value is added to the credit exposure When the order isdelivered the open order value is subtracted and the open delivery value added to the exposure On billing thedelivery open delivery value is subtracted and the open billing value is added to the exposure When billingposts to accounting the open billing value is subtracted and the open AR value added to the exposure Theexposure is finally reduced when the cash is applied against open AR000015 ndash Calculates exposure without considering open sales order value When the order is delivered theopen delivery value is added to exposure On billing the delivery open delivery value is subtracted and the openbilling value is added to the exposure When billing posts to accounting the open billing value is subtracted andthe open AR value added to the exposure The exposure is finally reduced when the cash is applied againstopen AR
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open AR00018 ndash This is relevant for non-delivery-relevant orders only When a new order is created the open deliveryvalue is added to the credit exposure When the order is billed the open delivery value is subtracted and theopen billing added to the exposure When billing posts to accounting the open billing value is subtracted andthe open AR value added to the exposure The exposure is finally reduced when the cash is applied againstopen AR
Note SAP recommends the use of update group 000012
Organizational Unit in Credit Management The organizational unit used in credit management is Credit Control Area It represents the area wherecustomer credit limits are specified and monitoredDepending on the relationship between credit control area and company code the credit management can becategorized as
Decentralized credit managementEvery company code has its own credit control area Hence we can define credit limits for acustomer separately for each company code This method delivers benefits such as the localpayment cultures can be respected each company code has the independence to make its owndecisions
Centralized credit managementMultiple company codes are clubbed under the same credit control area So if the customertransacts with company codes which are under the same credit control area the limit is set for allthe company codes combined together
If the currencies of these company codes are different from that of the credit control area the receivables areconverted to the credit control area currency to check with the credit limit set Centralized credit managementhas benefits such as easier analysis of credit policy and modifications required the focus is shifted to otherimportant areas such as bad debt reductions and improved customer relations as there is only a central creditteam that needs to be consulted irrespective of the geography etc
Figure 5 Organisational Unit in Credit Management
Assigning Company Codes to a Credit Control AreaSPRO gt Enterprise Structure gt Assignment gt Financial Accounting gt Assign Company Code to Credit ControlArea
Figure 6 Company Codes to Credit Control Area Assigning Sales Area to a Credit Control AreaSPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit Control
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SPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit ControlArea
Figure 7 Sales Area to Credit Control Area Define Credit GroupsSPRO gt Sales amp Distribution gt Basic Functions gt Credit Management and Risk Management gt CreditManagement gt Define Credit GroupsThe credit group specifies which subsequent transaction can be blocked for processing if the credit limits areexceededYou can use the default credit groups or create new once
Figure 8 Define Credit Groups Assigning Sales Documents and Delivery Documents to Credit GroupSPRO gt Sales and Distribution gt Basic Functions gt Credit ManagementRisk Management gt CreditManagement gt Assign Sales Documents and Delivery Documents gt Credit Limit Check for Order Types gtCredit Limit Check for Delivery Types
Figure 9 Credit Limit Check for Order Type
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Figure 10 Credit Limit check for Delivery Type Simple Credit Check Vs Automatic Credit Check
a High-volume low-value requires automation and efficient handling through grouping with as little personalhandling as possible (refuse orders as much as possible)
b Low-volume high-value requires individualization with emphasis on reporting and blocked orders or deliveriesthat can be checked and unblocked
Figure 11 Simple Credit Check Vs Automatic Credit Check
Simple Credit CheckThe simple credit check compares the payer customer master recordrsquos credit limit to the net document value plus thevalue of all open itemsIn case the value of the document and open items is more than the credit limit
System may respond with a warning message in the sales order [OR]Warning message and a delivery block [OR]Error message which will cause the document not to be saved
Automatic Credit Check Variations amp Recommended UseAutomatic Credit Check - Gives extra parameters to define credit checks like Credit Control Area Risk Category andhellip
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Figure 12 Automatic Credit Check Maintenance STATIC CREDIT LIMIT DETERMINATION
1 Open Sales Orders + Sales Order Value2 Open Delivery3 Open Billing4 Open Receivables
Recommended Use This is seen to be safer to use as compared to Dynamic Credit Check as it covers alldocuments due to varying business needs For high volume and very low risk customers (eg Risk Category001) it is good practice to put deliveries on block and leave the orders untouched This prevents a level ofcheck DYNAMIC CREDIT CHECK 1) 2) 3) 4) Above Mentioned 5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 monthsRecommended Use If the business is always likely to have fast moving items leaving no chances of Open OrdersOpen Deliveries etc for long time period this is good to use There can be other business considerations to includeonly Open items within certain period Maximum Document ValueThe sales order or delivery value may not exceed a specific value which is defined in the credit check Thevalue is stored in the currency of the credit control area This check is useful if the credit limit has not yet beendefined for a new customer It is initiated by a risk category which is defined specifically for new customersRecommended Use Use it for Credit Group 01 (Orders) and high risk category customers which you alwayswant to review beyond a particular value It may also be used for prepaid or one-time customer with Max docvalue Critical FieldsThis Credit check is initiated by document changes done in credit sensitive fields One such example is termsof payment When this field changes a check is done on the data in sales order against the data in thecustomer master
Date of Next ReviewSystem uses the date of the next credit review as a trigger for an automatic credit check If you process a sales orderafter a customers next review date has already gone by the system automatically carries out a credit check Overdue Open ItemsThe relation between open items which are more than a certain number of days overdue and the customer balancemay not exceed a certain percentage These values are defined in the customizing for automatic credit controlRecommended Use Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher riskcategory customers where you donrsquot want to have more than a certain of open items The values may be reducedwith increase in risk category values Oldest Open ItemThe oldest open item may not be more than a specified number of days overdueRecommended Use Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with StaticCredit Check for slightly Low-Medium risk category customers Maximum Number of Dunning Levels AllowedThe customers dunning level may only reach a specified maximum value exceeding which the item may be blocked ifso configured User-Defined Checks- For eg Cheque received from a customer bounced then subsequent orders may getblocked Credit Management at workFor each customer credit limits are specified in the particular credit master record If the customer exists in
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multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
converted by Web2PDFConvertcom
Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
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Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
converted by Web2PDFConvertcom
Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
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Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
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open AR00018 ndash This is relevant for non-delivery-relevant orders only When a new order is created the open deliveryvalue is added to the credit exposure When the order is billed the open delivery value is subtracted and theopen billing added to the exposure When billing posts to accounting the open billing value is subtracted andthe open AR value added to the exposure The exposure is finally reduced when the cash is applied againstopen AR
Note SAP recommends the use of update group 000012
Organizational Unit in Credit Management The organizational unit used in credit management is Credit Control Area It represents the area wherecustomer credit limits are specified and monitoredDepending on the relationship between credit control area and company code the credit management can becategorized as
Decentralized credit managementEvery company code has its own credit control area Hence we can define credit limits for acustomer separately for each company code This method delivers benefits such as the localpayment cultures can be respected each company code has the independence to make its owndecisions
Centralized credit managementMultiple company codes are clubbed under the same credit control area So if the customertransacts with company codes which are under the same credit control area the limit is set for allthe company codes combined together
If the currencies of these company codes are different from that of the credit control area the receivables areconverted to the credit control area currency to check with the credit limit set Centralized credit managementhas benefits such as easier analysis of credit policy and modifications required the focus is shifted to otherimportant areas such as bad debt reductions and improved customer relations as there is only a central creditteam that needs to be consulted irrespective of the geography etc
Figure 5 Organisational Unit in Credit Management
Assigning Company Codes to a Credit Control AreaSPRO gt Enterprise Structure gt Assignment gt Financial Accounting gt Assign Company Code to Credit ControlArea
Figure 6 Company Codes to Credit Control Area Assigning Sales Area to a Credit Control AreaSPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit Control
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SPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit ControlArea
Figure 7 Sales Area to Credit Control Area Define Credit GroupsSPRO gt Sales amp Distribution gt Basic Functions gt Credit Management and Risk Management gt CreditManagement gt Define Credit GroupsThe credit group specifies which subsequent transaction can be blocked for processing if the credit limits areexceededYou can use the default credit groups or create new once
Figure 8 Define Credit Groups Assigning Sales Documents and Delivery Documents to Credit GroupSPRO gt Sales and Distribution gt Basic Functions gt Credit ManagementRisk Management gt CreditManagement gt Assign Sales Documents and Delivery Documents gt Credit Limit Check for Order Types gtCredit Limit Check for Delivery Types
Figure 9 Credit Limit Check for Order Type
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Figure 10 Credit Limit check for Delivery Type Simple Credit Check Vs Automatic Credit Check
a High-volume low-value requires automation and efficient handling through grouping with as little personalhandling as possible (refuse orders as much as possible)
b Low-volume high-value requires individualization with emphasis on reporting and blocked orders or deliveriesthat can be checked and unblocked
Figure 11 Simple Credit Check Vs Automatic Credit Check
Simple Credit CheckThe simple credit check compares the payer customer master recordrsquos credit limit to the net document value plus thevalue of all open itemsIn case the value of the document and open items is more than the credit limit
System may respond with a warning message in the sales order [OR]Warning message and a delivery block [OR]Error message which will cause the document not to be saved
Automatic Credit Check Variations amp Recommended UseAutomatic Credit Check - Gives extra parameters to define credit checks like Credit Control Area Risk Category andhellip
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Figure 12 Automatic Credit Check Maintenance STATIC CREDIT LIMIT DETERMINATION
1 Open Sales Orders + Sales Order Value2 Open Delivery3 Open Billing4 Open Receivables
Recommended Use This is seen to be safer to use as compared to Dynamic Credit Check as it covers alldocuments due to varying business needs For high volume and very low risk customers (eg Risk Category001) it is good practice to put deliveries on block and leave the orders untouched This prevents a level ofcheck DYNAMIC CREDIT CHECK 1) 2) 3) 4) Above Mentioned 5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 monthsRecommended Use If the business is always likely to have fast moving items leaving no chances of Open OrdersOpen Deliveries etc for long time period this is good to use There can be other business considerations to includeonly Open items within certain period Maximum Document ValueThe sales order or delivery value may not exceed a specific value which is defined in the credit check Thevalue is stored in the currency of the credit control area This check is useful if the credit limit has not yet beendefined for a new customer It is initiated by a risk category which is defined specifically for new customersRecommended Use Use it for Credit Group 01 (Orders) and high risk category customers which you alwayswant to review beyond a particular value It may also be used for prepaid or one-time customer with Max docvalue Critical FieldsThis Credit check is initiated by document changes done in credit sensitive fields One such example is termsof payment When this field changes a check is done on the data in sales order against the data in thecustomer master
Date of Next ReviewSystem uses the date of the next credit review as a trigger for an automatic credit check If you process a sales orderafter a customers next review date has already gone by the system automatically carries out a credit check Overdue Open ItemsThe relation between open items which are more than a certain number of days overdue and the customer balancemay not exceed a certain percentage These values are defined in the customizing for automatic credit controlRecommended Use Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher riskcategory customers where you donrsquot want to have more than a certain of open items The values may be reducedwith increase in risk category values Oldest Open ItemThe oldest open item may not be more than a specified number of days overdueRecommended Use Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with StaticCredit Check for slightly Low-Medium risk category customers Maximum Number of Dunning Levels AllowedThe customers dunning level may only reach a specified maximum value exceeding which the item may be blocked ifso configured User-Defined Checks- For eg Cheque received from a customer bounced then subsequent orders may getblocked Credit Management at workFor each customer credit limits are specified in the particular credit master record If the customer exists in
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multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
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Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
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Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
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Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
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Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
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SPRO gt Enterprise Structure gt Assignment gt Sales and Distribution gt Assign Sales Area to Credit ControlArea
Figure 7 Sales Area to Credit Control Area Define Credit GroupsSPRO gt Sales amp Distribution gt Basic Functions gt Credit Management and Risk Management gt CreditManagement gt Define Credit GroupsThe credit group specifies which subsequent transaction can be blocked for processing if the credit limits areexceededYou can use the default credit groups or create new once
Figure 8 Define Credit Groups Assigning Sales Documents and Delivery Documents to Credit GroupSPRO gt Sales and Distribution gt Basic Functions gt Credit ManagementRisk Management gt CreditManagement gt Assign Sales Documents and Delivery Documents gt Credit Limit Check for Order Types gtCredit Limit Check for Delivery Types
Figure 9 Credit Limit Check for Order Type
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Figure 10 Credit Limit check for Delivery Type Simple Credit Check Vs Automatic Credit Check
a High-volume low-value requires automation and efficient handling through grouping with as little personalhandling as possible (refuse orders as much as possible)
b Low-volume high-value requires individualization with emphasis on reporting and blocked orders or deliveriesthat can be checked and unblocked
Figure 11 Simple Credit Check Vs Automatic Credit Check
Simple Credit CheckThe simple credit check compares the payer customer master recordrsquos credit limit to the net document value plus thevalue of all open itemsIn case the value of the document and open items is more than the credit limit
System may respond with a warning message in the sales order [OR]Warning message and a delivery block [OR]Error message which will cause the document not to be saved
Automatic Credit Check Variations amp Recommended UseAutomatic Credit Check - Gives extra parameters to define credit checks like Credit Control Area Risk Category andhellip
converted by Web2PDFConvertcom
Figure 12 Automatic Credit Check Maintenance STATIC CREDIT LIMIT DETERMINATION
1 Open Sales Orders + Sales Order Value2 Open Delivery3 Open Billing4 Open Receivables
Recommended Use This is seen to be safer to use as compared to Dynamic Credit Check as it covers alldocuments due to varying business needs For high volume and very low risk customers (eg Risk Category001) it is good practice to put deliveries on block and leave the orders untouched This prevents a level ofcheck DYNAMIC CREDIT CHECK 1) 2) 3) 4) Above Mentioned 5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 monthsRecommended Use If the business is always likely to have fast moving items leaving no chances of Open OrdersOpen Deliveries etc for long time period this is good to use There can be other business considerations to includeonly Open items within certain period Maximum Document ValueThe sales order or delivery value may not exceed a specific value which is defined in the credit check Thevalue is stored in the currency of the credit control area This check is useful if the credit limit has not yet beendefined for a new customer It is initiated by a risk category which is defined specifically for new customersRecommended Use Use it for Credit Group 01 (Orders) and high risk category customers which you alwayswant to review beyond a particular value It may also be used for prepaid or one-time customer with Max docvalue Critical FieldsThis Credit check is initiated by document changes done in credit sensitive fields One such example is termsof payment When this field changes a check is done on the data in sales order against the data in thecustomer master
Date of Next ReviewSystem uses the date of the next credit review as a trigger for an automatic credit check If you process a sales orderafter a customers next review date has already gone by the system automatically carries out a credit check Overdue Open ItemsThe relation between open items which are more than a certain number of days overdue and the customer balancemay not exceed a certain percentage These values are defined in the customizing for automatic credit controlRecommended Use Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher riskcategory customers where you donrsquot want to have more than a certain of open items The values may be reducedwith increase in risk category values Oldest Open ItemThe oldest open item may not be more than a specified number of days overdueRecommended Use Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with StaticCredit Check for slightly Low-Medium risk category customers Maximum Number of Dunning Levels AllowedThe customers dunning level may only reach a specified maximum value exceeding which the item may be blocked ifso configured User-Defined Checks- For eg Cheque received from a customer bounced then subsequent orders may getblocked Credit Management at workFor each customer credit limits are specified in the particular credit master record If the customer exists in
converted by Web2PDFConvertcom
multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
converted by Web2PDFConvertcom
Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
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Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
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Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom
Figure 10 Credit Limit check for Delivery Type Simple Credit Check Vs Automatic Credit Check
a High-volume low-value requires automation and efficient handling through grouping with as little personalhandling as possible (refuse orders as much as possible)
b Low-volume high-value requires individualization with emphasis on reporting and blocked orders or deliveriesthat can be checked and unblocked
Figure 11 Simple Credit Check Vs Automatic Credit Check
Simple Credit CheckThe simple credit check compares the payer customer master recordrsquos credit limit to the net document value plus thevalue of all open itemsIn case the value of the document and open items is more than the credit limit
System may respond with a warning message in the sales order [OR]Warning message and a delivery block [OR]Error message which will cause the document not to be saved
Automatic Credit Check Variations amp Recommended UseAutomatic Credit Check - Gives extra parameters to define credit checks like Credit Control Area Risk Category andhellip
converted by Web2PDFConvertcom
Figure 12 Automatic Credit Check Maintenance STATIC CREDIT LIMIT DETERMINATION
1 Open Sales Orders + Sales Order Value2 Open Delivery3 Open Billing4 Open Receivables
Recommended Use This is seen to be safer to use as compared to Dynamic Credit Check as it covers alldocuments due to varying business needs For high volume and very low risk customers (eg Risk Category001) it is good practice to put deliveries on block and leave the orders untouched This prevents a level ofcheck DYNAMIC CREDIT CHECK 1) 2) 3) 4) Above Mentioned 5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 monthsRecommended Use If the business is always likely to have fast moving items leaving no chances of Open OrdersOpen Deliveries etc for long time period this is good to use There can be other business considerations to includeonly Open items within certain period Maximum Document ValueThe sales order or delivery value may not exceed a specific value which is defined in the credit check Thevalue is stored in the currency of the credit control area This check is useful if the credit limit has not yet beendefined for a new customer It is initiated by a risk category which is defined specifically for new customersRecommended Use Use it for Credit Group 01 (Orders) and high risk category customers which you alwayswant to review beyond a particular value It may also be used for prepaid or one-time customer with Max docvalue Critical FieldsThis Credit check is initiated by document changes done in credit sensitive fields One such example is termsof payment When this field changes a check is done on the data in sales order against the data in thecustomer master
Date of Next ReviewSystem uses the date of the next credit review as a trigger for an automatic credit check If you process a sales orderafter a customers next review date has already gone by the system automatically carries out a credit check Overdue Open ItemsThe relation between open items which are more than a certain number of days overdue and the customer balancemay not exceed a certain percentage These values are defined in the customizing for automatic credit controlRecommended Use Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher riskcategory customers where you donrsquot want to have more than a certain of open items The values may be reducedwith increase in risk category values Oldest Open ItemThe oldest open item may not be more than a specified number of days overdueRecommended Use Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with StaticCredit Check for slightly Low-Medium risk category customers Maximum Number of Dunning Levels AllowedThe customers dunning level may only reach a specified maximum value exceeding which the item may be blocked ifso configured User-Defined Checks- For eg Cheque received from a customer bounced then subsequent orders may getblocked Credit Management at workFor each customer credit limits are specified in the particular credit master record If the customer exists in
converted by Web2PDFConvertcom
multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
converted by Web2PDFConvertcom
Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
converted by Web2PDFConvertcom
Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
converted by Web2PDFConvertcom
Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
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Figure 12 Automatic Credit Check Maintenance STATIC CREDIT LIMIT DETERMINATION
1 Open Sales Orders + Sales Order Value2 Open Delivery3 Open Billing4 Open Receivables
Recommended Use This is seen to be safer to use as compared to Dynamic Credit Check as it covers alldocuments due to varying business needs For high volume and very low risk customers (eg Risk Category001) it is good practice to put deliveries on block and leave the orders untouched This prevents a level ofcheck DYNAMIC CREDIT CHECK 1) 2) 3) 4) Above Mentioned 5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 monthsRecommended Use If the business is always likely to have fast moving items leaving no chances of Open OrdersOpen Deliveries etc for long time period this is good to use There can be other business considerations to includeonly Open items within certain period Maximum Document ValueThe sales order or delivery value may not exceed a specific value which is defined in the credit check Thevalue is stored in the currency of the credit control area This check is useful if the credit limit has not yet beendefined for a new customer It is initiated by a risk category which is defined specifically for new customersRecommended Use Use it for Credit Group 01 (Orders) and high risk category customers which you alwayswant to review beyond a particular value It may also be used for prepaid or one-time customer with Max docvalue Critical FieldsThis Credit check is initiated by document changes done in credit sensitive fields One such example is termsof payment When this field changes a check is done on the data in sales order against the data in thecustomer master
Date of Next ReviewSystem uses the date of the next credit review as a trigger for an automatic credit check If you process a sales orderafter a customers next review date has already gone by the system automatically carries out a credit check Overdue Open ItemsThe relation between open items which are more than a certain number of days overdue and the customer balancemay not exceed a certain percentage These values are defined in the customizing for automatic credit controlRecommended Use Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher riskcategory customers where you donrsquot want to have more than a certain of open items The values may be reducedwith increase in risk category values Oldest Open ItemThe oldest open item may not be more than a specified number of days overdueRecommended Use Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with StaticCredit Check for slightly Low-Medium risk category customers Maximum Number of Dunning Levels AllowedThe customers dunning level may only reach a specified maximum value exceeding which the item may be blocked ifso configured User-Defined Checks- For eg Cheque received from a customer bounced then subsequent orders may getblocked Credit Management at workFor each customer credit limits are specified in the particular credit master record If the customer exists in
converted by Web2PDFConvertcom
multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
converted by Web2PDFConvertcom
Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
converted by Web2PDFConvertcom
Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
converted by Web2PDFConvertcom
Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom
multiple credit control areas individual limit can be specified for each credit control area In addition a centralcredit limit can also be specified for all the credit control areas under which the customer exists Then thetotal of the credit limits for each credit control area should not exceed the central credit limitFD32 (FI T code) is used to set credit limit and credit risk category for the customer
Figure 13 Credit Limit for Customer
Overview ScreenIt gives an overview of credit settings of the customer
Customerlsquos credit limit credit exposure percentage of credit limit used and horizon (as applicable indynamic credit check) are presented as statusPayment history along with the average number of days taken for payment is shownPayment data contains details such as authorized cash discount and unauthorized cash discount thatwas available for cleared items the outstanding receivables in sales daysDunning data consists of dunning area for the customer when he was last dunned and the dunning levelreached during the last dunning runControl contains the credit risk category of the customer date of the last check on customer credit limitif the customer is blocked for credit management business transactions the credit representative groupresponsible for the customer the payment history classification the financial standing of the customerand date when the credit check of the customer was carried out last
converted by Web2PDFConvertcom
Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
converted by Web2PDFConvertcom
Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
converted by Web2PDFConvertcom
Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom
Figure 14 Overview Screen Central Data ScreenIt gives an overview of central credit limit settings of the customer
The maximum permitted credit limit as a total of limits across all credit control areas to which thecustomer is assignedThe maximum permitted individual credit limit that a customer can have under any one credit control areaThe currency in which the two maximum limits are specified This is because we can enter the centraldata in any currency of choice independently of the currencies of the control areasThe currently exhausted credit limit as a total (percentage) across all credit control areas to which thecustomer is assigned (should be less than or equal to max limit)The currently assigned largest credit limit across all credit control areas to which the customer isassigned (should be less than or equal to max limit)Date on which the most recent general information about the customer was obtained
Figure 15 Central Data Screen Status Screen
Shows the customers actual individual details according to particular credit control areaThe credit limit for the credit control area credit account if the limit is to be specified for a group ofcustomers the percentage of credit exposure horizon date to be taken into consideration thereceivables special GL transactions and the order value not yet transferred to FI used for the creditexposure calculation as well as the amount of secured receivables is shown under credit limit dataThe credit risk category credit representative group customer credit group and customer group usedmainly for sorting or reporting the reference data for customer credit review if the customer is blocked forcredit management business transactions the last and next internal review date for the customer creditlimit as applicable to the particular credit control area are shown under Internal dataThe date of last external review the credit information number as applicable to external agency theclassification of payment history of the customer as well as the financial standing is shown under externaldata
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Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
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Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
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Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
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Figure 16 Status Screen Credit Check at work in Sales Order creationWhen sales order is created (SD) system verifies the credit limit used by the customer by communicating withvalues set in FD32 (FI)
Figure 17 Credit Check Release Sales Documents from Credit BlockBlock will be released if the Agent discussed with Customer and or payment is received from Customer VKM1VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block For thedocument selected the following options are available
Grant the credit and release the documentReject the credit and cancel the documentForward the blocked document to another processorRecheck the blocked documentReassign the blocked document and specify a new sequence of documents This enables to give priorityto and release several documents with a low document value until their credit limit is completely used upinstead doing so for a single document with a high document value that has already exceeded its creditlimit
Figure 18 Release Credit Block
Reports
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Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom
Average User Rating
(16 ratings)
1 TweetTweet 5
ReportsRFDKLI10 - Customers with missing credit dataRFDKLI20 - Reorganization of credit limit for customers in credit control areasRFDKLI30 - Central and credit control area related data for customer (short overview)RFDKLI40 - Overview credit limit (extensive)RFDKLI41 - Credit master sheetRFDKLI42 - Early warning listRFDKLI43 - Master data list especially for printing customer cards along with data from external systemsRFDKLI50 - Mass change for master data in credit managementRFDKLIAB - Display changes for credit management dataRVKRED06- Checking blocked credit documentsRVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)RVKRED09 - Checking the credit documents from credit view (released documents are checked only ifthe validity period for the release is up)RVKRED77 - Reorganization of open credit delivery and billing document values especially when updateerrors occurRVKRED88 - Simulation reorganization credit data SD
9036 Views Products sap_erp_financials Topics enterprise_resource_planning
ShareShare 1LikeLike
17 Comments
Like (0)
subhash pandit Sep 11 2013 1255 PM
Dear Sandeep Thanks for your knowledge sharing It is too useful for me RegardsSubhash P
Like (0)
Gulshan Batra Sep 11 2013 454 PM
Very thorough and well researched Sandeep Good job here RegardsGulshan
Like (0)
Advait Kulkarni Sep 11 2013 506 PM
This is really helpful SandeepThanks for sharing Advait
Like (0)
Karteek k Jun 11 2014 856 AM
Nice document thanks for detail explanation
Like (0)
Lakshmi Sama Jun 12 2014 822 AM
Hello Sandeep Nice explanation and it is really helpful Thanks for sharing your knowledge and keep sharing RegardsLakshmi S
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom
Like (0)
Jurairat Damrongtham Jun 20 2014 1236 PM
Dear SandeepI would like to ask more about dynamic credit check If I set at 3 options as follow- Dynamic- Document value- Open items 1 How the system work SAP will check from Dynamic -gt Document value -gt Open items or Openitems -gt Document value -gt Dynamic2 After SAP have checked and display credit blocked message If system found credit blocked fromDocument value and Open items How SAP display credit blocked message Message come fromDocument value or Open items Thank you in advanceJurairat D
Like (0)
Vinod Vemuru Jun 20 2014 114 PM
Thanks Sandeep This is a ready reference document for credit management ThanksV V
Like (0)
G Lakshmipathi Jun 20 2014 130 PM
A comprehensive blog on Credit Management Good work done G Lakshmipathi
Like (0)
Phanikumar V Jun 21 2014 600 AM (in response to G Lakshmipathi)
Sir---in document Configure and Customize SAP Automatic Credit Management---pleasecorrect the flaw as mentioned in my comment--thereby the people who follows this will getcorrect information I dont know why moderator approved this again even after my alert
Phanikumar
Like (0)
Jose Antonio Martinez Jun 20 2014 648 PM
Sandeep Thanks for share this info Very useful Regards Antonio Martinez
Like (1)
Phanikumar V Jun 20 2014 539 PM
Good work--i appreciate being an FI guy your presentation including SD is very nice Sorry to tell you that there a mistake in your document while sharing about dynamic credit checkabout Horizon periodas per you--5) Horizon Period Eg 3 MonthsHere the System will not consider the Open items 1 2 3 amp 4 values for beyond 3 months
No--- here-actually system will divides this 1234 as two parts---234 will be fixed called as staticpart and the the first option 1 will be called as dynamic part(open sales orders)(234 will be taken in credit calculations if lying beyond 3 months)the only difference is whether open sales order(with confirmed delivery schedule lines)--has to beconsidered in credit calculations or not(if lies in these 3 months--then this open sales order valuewill be added in credit calculations--otherwise no)
See F1 at dynamic credit check in OVA8--you will get more clarity
Please change this flaw in your presentation--once after confirming Phanikumar
Sada Bandla Jun 20 2014 630 PM
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom
Follow SCNSite Index Contact Us SAP Help PortalPrivacy Terms of Use Legal Disclosure Copyright
Like (0)
Hi SandeepGood document thank you for sharing knowledge Regards Sada Bandla
Like (0)
G Lakshmipathi Jun 21 2014 745 AM
Sandeep Agarwal Please check Phanikumar V comments retest the scenario and change your blog if necessary G Lakshmipathi
Like (0)
Mariks Jul 7 2014 413 PM
Many thanks for sharing valuable document
Like (0)
Ashok J S Jul 11 2014 1032 PM
Very helpful documentthanks for posting
Like (0)
Kundan Kumar Jul 13 2014 1238 PM
nice document
Like (0)
R MG Nov 5 2014 608 PM
Hello Thanks for the document very usefull during an Audit review with a client i came accross with thenext question Reviewing this process with a client I verified that when the Customer excided the credit limitassigned in SAP the system automatically blocked the purchase requisition In order to release itthe Credit the Clerk needed the Management authorization and this was done manually and outsideSAP Once she had the authorization sheet signed the clerk manually released the PRI wonder if it is possible to configure a SAP work flow in order to release credit block as when thecontrol is manually performed it could be easily override Thanks in advanceRegards
converted by Web2PDFConvertcom