How To Do Configuration For Credit Management Credit and risk management takes place in the credit control area.

According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between. An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.For example, if your credit management is centralized, you can define one credit control area for all of your company codes. If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes. Credit limits and credit exposure are managed at both credit control area and customer level. You set up credit control areas and other data related to credit management in Customizing for Financial Accounting. The implementation guide is under Enterprise Structure -> Definition or Assignment -> Financial Accounting and then Maintain credit control area. You assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record. Settings for determining the credit control area of a document. The settings of items 1 - 4 are taken into account according to their priority. The credit control area found is stored in field VBAK-KKBER. 1. Transaction OB38 Check which credit control area is assigned to the company code. Company code: Credit control area: 2. Transaction OVFL Check which credit control area is assigned to the sales area. Sales area: Credit control area: 3. Transaction XD02 or VD02 Check which credit control area is assigned to the payer. Payer: Credit control area: 4. Transaction SE37 Is user exit EXIT_SAPV45K_001 being used? 5. Transaction OBZK For the settings under items 2 - 4, field "All company codes" must be marked in Transaction OB45, or the credit control area must be entered under the relevant company code in table T001CM of the credit control areas allowed. Company code: Credit control areas allowed: 6. Settings for the credit checks 7. Transaction OVAK Which settings do exist for the sales document type used? Sales document: Check credit: Credit group: 8. Transaction OVAD Which settings do exist for the delivery type used? Delivery type: Credit group for delivery: Credit group for goods issue: 9. Transaction OB01 Credit management/Change risk category

Definition of the risk category for each credit control area. This risk category can be assigned to a credit account by using Transaction FD32. 10. Transaction OVA8 Here, the individual credit checks for key fields o credit control area o risk category o credit group are set. Take these key fields from the above settings and go to the detail screen. In particular, check whether fields "Reaction" and "Status/block" are set correctly. To carry out follow-up actions in case of a credit block, the credit check status must be set (field "Status/block"). 11. Transaction FD32 Credit master data for the payer of the relevant document. Credit account: Credit limit: Risk category: Currency: 12. Settings for updating the credit values Update of the credit values is required for the limit check (static or dynamic credit limit check). 13. Transaction OVA7 Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to field "Active receivable" in Transaction VOV7. Item type: Active receivable: 14. Transaction V/08, Pricing In the pricing procedure used for pricing, subtotal "A" must be entered in a line for determining the credit value (mark the pricing procedure and doubleclick on "Control"). Usually, the net value plus taxes is used. This way the system is determined to use this subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for update and credit check. You can find the used pricing procedure of the order under "Item -> Condition -> Analysis". Pricing procedure: Line with subtotal = 'A': 15. Transaction OB45 Which update group (field "Update") do you use in the relevant credit control area? The default setting is "12". If you use another update group, check whether this is fine with you. If you open an OSS message, please tell us the alternative update group. Credit control area: Update: 16. Transaction OMO1 Which kind of update did you choose for structure S066? In any case, "Synchronous update (1)" has to be chosen as the kind of update. All other settings will lead to errors. What do you mean by credit exposure? They are the transactions with a customer that are relevant for credit limits on a specified date. The credit exposure is updated based on the update algorithm assigned to the credit control area. 000012 - updated at Sales Order 000015 - updated at Delivery 000018 - updated at Billing To look at only Receivables for a customer look in FD32. If you have bad data run the reorganization program through SE38.

Check Note 425523 - Collection of consulting notes: Credit update and related. Surely you must run report RVKRED77 (Note 400311 - RVKRED77: Reorganization credit data, new documentation and related will help you). 1. How is credit exposure calculated (seen in FD32)? Its simple summation of Receivables + Special liabilities (like down payments, advance) + Sales value 2. If Update=000012 in CCAr then on creating Sales Order, the exposure increases by SO value. But if update=000015, then also on creating Sales Order, the exposure increases by SO value. Is this correct? I think in case of 000015 Open sales order values should not be considered. 3. What role exposure play in the credit management process. I mean does the system match the value of credit exposure with credit limit to find that it is exceeded or it does it differently? Credit exposure is in fact the main player. In credit management if the customers credit limit is 10000 and credit exposure is 9900 then customer can only be able to buy now worth of 100 only. Its the credit exposure which should not crossed over the credit limit. For reporting purpose, where we can get customer credit exposure which showing in FD32. Go to t.code F.31 for an overview of the credit exposure, and also you can use s_ALR_8701212218 to overview the credit exposure. Explain the differences in V.23 and V23 In my opinion, V23 displays the list of SD documents that are blocked for billing which includes credit blocks also (apart from header level and item level blocking reasons). Whereas V.23, captures SD documents that are applied with billing blocks that will not include credit blocks. Depending on the user requirement, either one of these can be used. For example, V.23 can be used when credit memo or debit memo or returns are processed, where in users apply or by default the billing block is applied for further review.

Difference in V23 report if you select "open SD documents" or "All SD documents". Open sales orders are orders for which delivery is not yet created. All sales orders will give you the list of orders for which deliveries are created. In test system, just try with both options & check what orders you get.

What is the transaction code for list of blocked sales orders? VKM3 is T.code for credit blocked sales orders. Generally the T.code for incomplete SD documents is V.01 Use Tcode - V.14 It gives the list of all sales orders blocked for deliver, whatever may be the reason like credit block, delivery block etc. TCode for Delivery Blocked Sales order is VA14L. & TCode for Billing Blocked Sales order is V23.

Note: You may need to check notes: 339134 - Completed' docs should not be display in SDLIEFSPE+SDFAKSPE 397414 - Selection of SDLIEFSPE and SDFAKSPE (VA14L or V23). My User created a Sales order with 200 tones which values was around 5700 USD, but while saving, it did not block for credit but the customer was over their credit limit. In FD32, it already exceed 152%. I check in FD32, it showing Credit limited used 152%. How should I troubleshoot the credit management? Answer: Please check the settings in OVA8, whether you have maintained to block the sales order or not. Check the CREDIT MANAGEMENT settings at the sales order level. Goto SPRO--->SALES AND DISTRIBTION--->BASIC FUNCTIONs--->CREDIT MANAGEMENT/RISK MANAGEMENT--->CREDIT MANAGEMENT--->ASSIGN SALES DOCUMENTS AND DELIVERY DOCUMENTS Assign your sales document types to the CREDIT CHECK & CREDIT GROUP. AUTOMATIC CREDIT CHECK will be determined based on the following criteria: It will check: - CREDIT CONTROL AREA - CREDIT GROUP - RISK CATEGORY. You have to define the CREDIT GROUP and RISK CATEGORY based on which you can determine the ATOMATIC CREDIT CHECK. Goto the PATH: IMG--->BASIC FUNCTIONS--->CREDIT MANAGEMENT/RISK MANAGEMENT-->CREDIT MANAGEMENT-->DEFINE CREDIT GROUPS Credit group checks the credit limit for Sales order, Delivery or PGI. Based on the requirement, you can define this: The following credit groups are contained in the standard SAP R/3 System: - 01 = credit group for sales order - 02 = credit group for delivery

- 03 = credit group for goods issue Next, you have to assign the credit group to sales documents/Delivery documents. Follow the same path as above. Maintain your sales document type/Delivery document type as per your requirement and in the Check credit field maintain as D and in the Credit group field maintain the value you gave defined previously. Then Define Automatic credit control with your: *CREDIT CONTROL AREA, CREDIT GROUP AND RISK CATEOGRY* You have to define the Credit limit for your customer in the Transaction code FD32. Now, once you execute the transaction and if the limit of the customer exceeds, then automatically it will block the sales order.
4. Can you create proforma invoice without performing PGI on a delivery ? Ans 2 You can create a Proforma Invoice from Delivery Document before PGI & then create actual Invoice after doing PGI. For Proforma Invoice before PGI you have to do the following setting: IMG Sales and Distribution Billing Billing Documents Maintain Copying Control For Billing Documents Copying control: Delivery document to billing document Here select your Delivery & Billing Type & at Header Level in Copying requirements insert routine 11 Head.dlv-rel.w/o GI. No other setting is required for Delivery to actual Invoice.