Bank is offering to increase my credit limit on 2 credit cards - good or bad idea?

My bank is offering to increase my credit limit on 2 credit cards.I have an excellent credit score, and already have more than enough credit limit available on my credit cards.I know that a higher limit would make for a better credit score when there is some debt on the cards.HOWEVER - What I'd like to know:Is it ever a bad idea to accept a credit limit increase offer from a bank / credit card issuer?Also - Can a too high of a credit limit affect ones ability to get a mortgage or other loans? Thanks!

SeattleGuy1968 wrote:
My bank is offering to increase my credit limit on 2 credit cards.I have an excellent credit score, and already have more than enough credit limit available on my credit cards.I know that a higher limit would make for a better credit score when there is some debt on the cards.HOWEVER - What I'd like to know:Is it ever a bad idea to accept a credit limit increase offer from a bank / credit card issuer?Also - Can a too high of a credit limit affect ones ability to get a mortgage or other loans? Thanks!Depends how much debt we're talking about, 1% is still basically 1% even increasing your aggregate CL massively. Doesn't matter for FICO if your balances aren't there, might matter for Vantage Score if you care about such things. As for a bad idea, no not really unless some future lender figures you're overextended. Personally I don't limit chase just to limit chase, there are certain cards I want a high limit on (travel card, default spend card, and balance carrying cards to be explicit), and others such as my Freedom at 1K I couldn't care less what it was as I only use it for 5% rewards and it'd be rare for me to get a >1K purchase other than maybe Amazon during the holidays. Limits are irrelevant for mortgages and most other loans, the key there is your FICO score and your DTI ratio, and there the minimum payment amount counts, not the potential maximum. FWIW in the current market there's people with 4-5X their income in card limits on this forum, that may not be a fantastic idea for most people, but current market doesn't really matter and as such I'd probably accept them personally. There are some people who chase credit card signup bonuses, and for those, limiting their current amount of available credit might sway an underwriting decision in their direction, and as such they might wish to decline, I just haven't ever done that... yet at least .

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User exit for merging the credit limit in different credit control area.

Dear All,
Please provide user exit for the merging the credit limit in different credit control area as well as logic for the same.
I have to merge the overall credit limit of the customer for some divisions. At this time in one company code we have created 9 credit control area as per product line. While creating customer master data and Credit management (FD32) user has assigned the different limit with respective to credit control area e. g Customeru2019s total limit assigned is 10 laks. For credit control 1100 Limit is Rs. 3 laks and for credit control area 2200 limit is 7 laks. Now the user wants to merge the credit limit for only above two credit control area. The sales orders should get created in any credit control area up to 10 laks.
Regards,
Suresh

Dear Damodhar/All,
Would you please explain me prerequisite setting from functional side for these user exit?
I want complete functional setting prior to ABAP application so that it work properly post configuration.
Regards,
Suresh

Can ALV Grid show credit limit and excess credit limit but do not sum them?

Can ALV Grid show 100,000.00(in ???1) and 84,260.94(???2). Not sum them up.
Credit limit, Inv. Curr, Inv. Amount, Amt in LC, Excess Credit Limit
100,000.00     USD     1,594.20     5,260.86     84,260.94
100,000.00     USD     263.84     870.67     84,260.94
100,000.00     USD     1,935.60     6,270.38     84,260.94
100,000.00     USD     806.70     2,613.30     84,260.94
100,000.00     USD     214.98     696.43     84,260.94
100,000.00     USD     8.50     27.42     84,260.94
???1     USD     4,823.82     15,739.06     ???2
USD     4,823.82     15,739.06

Hi Sandeep,
Please refer to the bold figure as they are the credit limit and excess credit limit for 1 vendor.
It is not right if sum the credit limit and excess credit limit.
Is it ALV cant handle this type of requirement?
Is there any way to solve this?
Credit limit, Inv. Curr, Inv. Amount, Amt in LC, Excess Credit Limit
100,000.00 USD 1,594.20 5,260.86 84,260.94
100,000.00 USD 263.84 870.67 84,260.94
100,000.00 USD 1,935.60 6,270.38 84,260.94
100,000.00 USD 806.70 2,613.30 84,260.94
100,000.00 USD 214.98 696.43 84,260.94
100,000.00 USD 8.50 27.42 84,260.94
100,000.00 USD 4,823.82 15,739.06 84,260.94 <--subtotal line
USD 4,823.82 15,739.06 <-- total line
Edited by: Check Chuan Kuan on Feb 24, 2011 10:03 AM

Distribution channel wise credit limit on one credit control area

Dear colleagues,
I got requirement to define credit limits for customers depending on distribution channel but all must be within one credit control area. Is it possible to set up system in that manner?
Regards,
Harry

Hi Shichang,
My company have 3 distribution channels Wholesales, Retail and Internet. Each of them sell unique products, but in some portion their portfolio is overlapping. Each of this distribution channels are independent departments and each of them define own credit limits for the customers. Management want to have one credit control area for reporting purposes.
One customer can buy from one or more distribution channels. If for example X Inc, buy from Wholesales they should have 100,000.00$ credit limit, but if they buy from Internet they should have 10,000.00$. Each of this credit limits need to be independent, but in reports everything should be summarized.
Hope that this detailed explanation is helpful.
Regards,
Harry

Auto release of Blocked Sales orders after pmnt or Increase of Credit limit

Hi
Does anyone know if there is a transaction or something in one of the blocked Order transactions that can be used to auto release orders after either 1 - Monies have been recieved or 2 - Credit limit has been increased
Scenario we have is several orders have been on block due to credit being over credit limit,
The credit limit has been increased
However these orders are still on the blocked orders report, even tho they are now under the credit threshold
Is there a re-org program to use ?
Is there a setting on the VKm1 transaction to refresh or re-read the credit master FD33 , - as now monies have been received or Credit threshhold has been increased
Thank you for any information
Tony

Hello,
This is not possible because when you created the sales order it has checked the credit limit for that credit limit and if you increase also now that block cant go automatically.
Go to VA02 i.e change mode of sales order and change something and enter may be if you created a order for 2 quantity then go to VA02 and remove the quantity 2 and again type 2 then system will again check for credit and now that is increased so the order will not block..
If this is for many order then you can run changes sales order BAPI for mass update. Take help from ABAP guys.
Cheers
Say

Does Simple Credit Limit Check Include Checking for Open Orders

Hi all,
I have this issue here where I have configured the system to use simple credit limit check with error message. I did not use the standard/common automatic credit limit check since user insist on a pop-up warning and that the order could not be saved. But, I realized that it does not take open orders into account too although I have set the risk categories. Is it true and what solution is there for this issue then.
Thank you for all your help in inputs.
Regards,
Yvonne

Hi,
Please follow the below configuration settings for Simple credit check process.
Simple credit check: In simple credit check the system compares the credit exposure with payers credit limit. The
credit exposure results from the total of the net document value and the value of the open items.
We can set the following system responses at when the credit limit has been reached.
A u2013Warning message
B u2013 Error message
C u2013 Delivery block
Specify in VOV8  Credit limit [C]
Configuration settings:
Sales documents types u2013 Credit limit check: Transaction code: OVAK
Path:
 IMG
 Sales and Distribution
 Basic functions
 Credit management/Risk management
 Simple credit limit check
 Choose sales document type OR
 Specify value
[ ] = No credit limit check
[A] = Run simple credit limit check and warning message
<b> = Run simple credit limit check and error message
[C] = Run simple credit limit check and delivery block
 Save and Exit
Define credit control area: Transaction code: OB45
Credit control area is an organizational unit that specifies and checks the credit limit for customers. A credit control
area can include one or more company codes. It means we can assign one credit control area to number of company
codes.
NOTE: Within credit control area the credit limit must be specified in the same currency.
Path:
 IMG
 Enterprise structure
 Definition
 Financial accounting
 Define credit control area
 Go to new entries
(OR)
 Choose existing credit control area
 Select it and click on copy icon
 Rename it and click on details icon
Specify currency [INR]
257
Data for updating SD fields
Update [000012]: Open order value on time axis, delivery and billing document value. This field value controls
when the values are open sales orders, deliveries, billing documents are updated in LIS. We can specify the
following update groups for updating credit related statistics.
 Update group 000012:
Sales order: Increase open order value from delivery relevant schedule lines.
Delivery: Reduces open order value from delivery relevant schedule lines.
Increases open delivery value
Billing document: Reduces the open delivery value, increases open billing document value.
Financial accounting document: Reduces open billing document value
Increases open items.
 Update group 000015:
Delivery: Increases open delivery value.
Increases open billing document value.
Financial accounting document: Reduces open billing document value
Increases open items.
 Update group 000018:
Sales order: Increases open delivery value
Billing document: Reduces open delivery value.
Increases open billing document value.
Financial accounting document: Reduces open billing document value.
Increases open items.
Fiscal year variant [K4]: It indicates specific fiscal year variant for particular credit control area. The fiscal year
variant is essential when a credit control area covers multiple company codes whose fiscal years are different. Then
the values of the open orders are updated by posting period.
Specify risk category [001]: 001 = High risk
002 = Medium risk
003 = Low risk
This risk category entered in the related control area of the customeru2019s credit master record, which is automatically
created when a customer is created in a company code.
The credit master record is automatically maintained when at least one of the below fields is maintained for the
corresponding control area.
(A) Risk category
(B) Credit representative group
(C) Credit limit
Credit limit: The credit limit that we enter here in the specific credit control area of the customeru2019s credit master
record. This is automatically created when a customer is created in a company code (in XD01).
NOTE: This credit limit is not a total credit limit for the control area.
Representative group [001]: Define credit representative group in IMG.
 All company codes: If we want to tell to the system that, this credit control area is permitted for
postings in every company code we have defined.
 Save and Exit
NOTE: After this create Risk categories and Credit representative groups and come back to this step and assign
these values to our credit control area.
Risk category and Representative group defined and maintained by FI/CO consultants in IMG.
258
Assign company code to credit control area: Transaction code: OB38
Path:
 IMG
 Enterprise structure
 Assignment
 Financial accounting
 Assign company code to credit control area
 Choose our company code from position button
 Click on assign button on the application tool bar
 Select our credit control area from the list and assign it
 Save and Exit
 Go to FD32 and check whether system created customeru2019s credit master data automatically or not.
System creates customers credit master data automatically when we (FI/CO) people) configure credit control area in
IMG.
So as to perform simple credit check we have to specify customer master payers limit in the credit control area, and
create customer master in XD01 transaction code.
 Specify reconciliation account number (GL account number)
 Payment history record: Check payment history record control in payment transaction tab. It is the
control parameter to update the payment details that are made by customers and system will show the
payment details in the FD32.
 Specify the credit control area in credit control area field in billing document tab.
 Save and Exit
 Go to VA01 and raise the sales order
Check the system responses in each and every level of sales document processing and check whether the system
blocked the delivery document (due to the setting in VOV8 of OR in check credit limit field [C] = Blocked for
delivery).
 To release the delivery go to VKM4 and release the delivery document.

Static credit check: credit limit exceeded for consignment issue delivery

Hi,
We are encountering a credit limit exceeded error in delivery creation for a consignment issue.
In SPRO config "Credit limit check for order types", no credit limit check is assigned to the order type. However, there is one assigned for the delivery type. Also, for CCAr/Risk cat./CG combination in OVA8 (Auto Credit Block Delivery), static credit check has been activated with error message reaction. Open orders and open deliveries were also activated. Customer exceeded credit exposure but user cannot release the order in any VKMx transactions as no credit limit check is assigned to the order type.
Given that this is the current setup, and the following conditions:
1. Credit limit for the customer cannot be increased
2. Oldest open item cannot be cleared just yet
Is there any way that we can proceed with delivery creation for this customer? The other order types have credit limit check so credit management team was able to release them. However, we are unsure on how to proceed with this consignment order. Kindly advise and thank you in advance for your help.

We are encountering a credit limit exceeded error in delivery creation for a consignment issue.
but user cannot release the order in any VKMx transactions as no credit limit check is assigned to the order type.
Looks contradictory and it may need to run report RVKRED77 to reorganization of open credit values. Try to run the report in test system and then run in production system. After running the report, the use must be able to release in VKM* transaction.
Regards,

Add Sales Document to Credit Limit Calculate

Hi,
How to Add Sales Document to Credit Limit Calculate?
both for, to increase credit limit/to decrease credit limit.
Thanks in advance.
Swetha

Hi,
We assign sales document type to credit group.(OVAK)
With credit groupcredit control arearisk category we maintain automatic credit control
in credit control area we specify the credit limit(FD32) with the indivisual customer.
1) SPRO- Enterprise Structure- Definition-Financial account- Define Credit Control area (OB45)
The Credit limits specified here applies for new customers.
2) Assigning company Code to credit Control (OB38)
3) Credit control area is assigned to the sales area (OVFL)
5) Defining Risk Categories (OB01)-High, low, medium
6) Assign risk category to FD32 customer credit master data
7) OVA7-item category type assignment (credit active)
8) Define credit group (OB46)-sales doc., delivery doc., PGI
9) OVAK-Sales doc. Type assignment
10) Assignment of credit group (OVAD) to sales & delivery & PGI
11) Maintaining Credit limits for Customer FD32
12) Automatic Credit Control (OVA8): credit groupcredit control arearisk category
Edited by: susrikant on Sep 4, 2008 8:02 AM

Credit Limit Check - Value & Periodwise both at the same time

Dear All,
This problem is related to Credit Management.I want the system should carry out a check which will take into consideration both the value and credit limit days while punching a sales order.
For Example : Party : A Credit Limit : Rs. 1000/- Credit Limit days : 2
We have made one invoice of value Rs. 600/- Credit Exposure : 60% Remaining Credit Limit : Rs. 400/- on 08.01.2009.Now after 2days i.e. on 10.01.2009 I want the system to stop generation of sale order by setting the credit check block at the Sale Order level even though the sale order value will not exceed the remaining Credit Limit i.e. Rs.400 and the order will get blocked as a result of Credit Check being carried out on the basis of Credit Limit days.
The configurations which are at present prevailing in OVA8 are as follows -
CCA RkC CG Credit control Curr. Update
1000 001 01 High Risk Sale Orders INR 000012
No credit check 1
Item check (Check Box is marked on)
Checks
Reaction Status / Block Open Orders / Open Deliveries
Static C (Check Box is marked on) (Check Boxes are marked on)
Horizon - M
Oldest Open Item C (Check Box is marked on) Days oldest item - 30
All other check boxes and fields remain empty / blank.
Now considering the above scenario please suggest what other configurations are requiered to attain my requirement.
Looking forward to some valuable suggestions.
Thanks & Regards
Priyanka

Hi Priyanka
Your Configuration seems to be O.K
Even though every one has suggested , just change the following settings
In OVA8 make the changes
Max open item - Increase it to 75%
No of days - 1
Days oldest open item - Blank
Go to OMO1 and For the Infostructure S060 change the period to DAYS , if months or Year is there
Regards
Srinath

Unable to block or throw credit limit message while posting Sales Order.

Dear All,
I hv created new customer and extended credit limit through FD32, assigned Risk Categeory and set the limit to 10,000/-.
When i am posting Sale Order with 15,000 or more value, i am not getting any warning or error message while saving Sale Invoice. No block was set against delivery or billing in Sale Order.
Kindly guide me, which step i am missing. FYI, customer dont hv any open item or credit exposure as of now becoz he was new customer.
Regards,
Venkat

Option 1
If your requirement is to go ahead with warning message and allow saving the sales document, maintain A in VOV8 for credit limit check.
If you want to restrict creating sales order when credit limit exceeded maintain B in VOV8 for credit limit check.
Option 2
Now in OVA8 if you click on dynamic option. Make sure you satisfy these requirements
The customer's credit exposure is split into a static part - open items, open billing, and delivery values - and a dynamic part, the open order value. The open order value includes all not yet or only partially delivered orders. The value is calculated based on the shipping date and the credit horizon you specify in the adjacent field. For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit.
I would recommend with option 1, still if you want to go for option 2
Then click on Static and make sure you also select open orders and open deliveries.
This will happen if you select static
The customer's credit exposure may not exceed the established credit limit. The credit exposure is the total combined value of the following:
Open sales documents
Open delivery documents
Open billing documents
Open items (accounts receivable)
You can specify in the adjacent fields whether the system takes into account all open orders and all open deliveries.
Regards
Ravi.
I am sorry i wont be able to add further input than this.
Dont forget to reward points if you think it was successful

Approval for deviation from credit limit

Hi Guys
Approval for deviation from credit limit does not work in the following scenario.
Credit Limit = R20000
Balance = 0
Sales order added for R18000, no approval needed as less than credit limit.
Then user changes the Sales order amount to more than the credit limit and no approval is activated.
Any ideas? They are on 2007A SP 01 PL 7
Thanks

Hi,
Check below thread:
Credit limit approval
Approval for exceeding credit limit for particular bussiness partners
Hope this will help you.
Thanks,
Neetu

Change terms of payment and credit limit

Hello, i need to change the terms of payment of a customer as well as his credit limit.
CUSTOMER - terms of payment
KNB1-ZTERM
KNVV-ZTERM
CUSTOMER - credit limit
KNKA-KLIMG
KNKA-KLIME
KNKK-KNKK
any idea of how to do this (bapi or FM) besides of doing a BDC

Try function "BAPI_CUSTOMER_CREATEFROMDATA1"
First look at it seems to show that it might work. It calls function "SD_CUSTOMER_MAINTAIN_KNKA_K":
    (iv) insert the credit control data
IF CREDIT_CONTROL_FLAG = 'X'
AND SY-SUBRC = 0.
    CALL FUNCTION 'SD_CUSTOMER_MAINTAIN_KNKA_K'
        EXPORTING
            PI_REF_CUSTOMER   = I_BAPIKNA102-REF_CUSTMR
            PI_CUSTOMER       = I_BAPIKNA103-CUSTOMER
        EXCEPTIONS
            KNKA_INSERT_ERROR = 23
            KNKK_INSERT_ERROR = 24.
ENDIF.
Would still require some investigation. But seems like it might be a good starting point for you.
~Ian

Customer credit limit updation problem

Hi,
i created some customers, right now they don't have any credit limits, now by using fd32 Tcode i am trying to change the customer credit limit (creating new credit limit), but it is going to short-dump due to some time-out problem, can any one tell me for already existing users how to create credit limt.
Thanks,
Sreeram.

Hi
You need to enable the "audit trail" for this particular field
Go to System Admin: Security:AuditTrail:Install
Enable Audit Installation for AR
Enabling the audit trail wil help you know the changes history.
As far as my knowledge is concerned, there is no approval hierarchy on customer credit limit application, all you can do is to assign the responsibility to the authorized person.
Regards
Nouman Shaikh

Customer Credit Limit Not Showing in VKM4

In some cases the customer credit limit is not being displayed in VKM4 for dynamic credit check holds. It seems to happen for certain customers but we can't tell why. The holds are valid, the limit is just not showing and we'd like to know if this is by design or a bug.
We are running ECC 6.0
Thanks

Dear wradue ,
What difference did you find comparing the FD32 of customers with credit limit and without credit limit in VKM4?
Thanks & Regard,
Hegal K Charles

Partial Delivery on Credit limit check

Hi,
I have a requiremetn where I need to make a partial delivery if a sales order for the customer is exceeding its credit limit.
Customer credit limit = 100
SO --> 101
Item1 amount = 40
item2 amount = 50
item3 amount = 20
Then I need to block the 3rd item and make a partial delivery with the first two item. Also delivery happens for multiple SO as well.
Please suggest if spro setting or what customization required.
Thanks in advance,
Gaurang

Hi ,
Credit check will be at header level , i dont think it will allow u to create Delivery ?
this is as per my knowlede , plz check for experts notes on it.
regards
Prabhu

Bank is offering to increase my credit limit on 2 credit cards - good or bad idea?

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