Clearing amount calculation in Credit management

Hi All,
Can anyone tell me if Customer Invoices and Customer Credit Notes ( DR and DG ) should be included in the calculation of the Clearing amount ( total cleared ) on the credit management screens ? And what is the reasoning ..
Cheers
Jon

Hi,
It will considered only customer invoice only not the credit notes why because credit amount to given to that customer some purpose (retirement goods .....)
Regards,
venkataswamy.y
Edited by: yanamadala venkataswamy on Sep 25, 2009 9:51 AM

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Down Payment cleared against invoice but in credit management not updated

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A down payment of 185,000 was cleared against an invoice last year. But that value is still showing in the credit management Special liabilities. The orders are being blocked because of this. what should i do?
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Sir,
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Sales Order Line Items User Exit - Credit Management/ Exposure Calculation

Hello Folks
I am looking for a solution to a peculiar problem we have in credit management.
In case of Drop Ship sales order life cycle, the system automatically creates two line items per sales order - one each for Freight and Handling Fees. these are NOT relevant to schedule line delivery, nor are they billed to the customer along with the material billing. The default update rule for credit control area concerned is 12. The system, on finding line items not relevant to schedule line delivery automatically switches from rule 12 to 18. This leads to Open Deliveries field (S067-OLIWW) being updated instead of Open Orders (S066-OEIKW) on saving the sales order.
Once the sales order is billed for the material, the system should logically display net value as zero for the open order (as the 2 lines of fees and freight are not yet billed, the order is still open). But the system considers this figure at SALES DOCUMENT HEADER level and considers the net value as the total value of the sales document (including the material that is already billed).
What I am looking for is if there is an exit available whereby the system considers only those line items whose billing status indicator is "not complete". As such, the net value should be updated to the S067-OLIKW field net of the billed items.
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VKM1 uses FM SD_ORDER_CREDIT_RELEASE to release orders on credit.

CREDIT MANAGEMENT - EXPOSURE CALCULATION USER EXIT

Hello Folks
I am looking for a solution to a peculiar problem we have in credit management.
In case of Drop Ship sales order life cycle, the system automatically creates two line items per sales order - one each for Freight and Handling Fees. these are NOT relevant to schedule line delivery, nor are they billed to the customer along with the material billing. The default update rule for credit control area concerned is 12. The system, on finding line items not relevant to schedule line delivery automatically switches from rule 12 to 18. This leads to Open Deliveries field (S067-OLIWW) being updated instead of Open Orders (S066-OEIKW) on saving the sales order.
Once the sales order is billed for the material, the system should logically display net value as zero for the open order (as the 2 lines of fees and freight are not yet billed, the order is still open). But the system considers this figure at SALES DOCUMENT HEADER level and considers the net value as the total value of the sales document (including the material that is already billed).
What I am looking for is if there is an exit available whereby the system considers only those line items whose billing status indicator is "not complete". As such, the net value should be updated to the S067-OLIKW field net of the billed items.
Please advise if there is any such user exit available. Also, is there a way to customize this? We are exploring this at our end, but would appreciate an expert advise. Right advise will be awarded with brownie points
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Mandar Barve

Hi,
Actually I have got some User exits for credit checks...
LVKMPTZZ
LVKMPFZ1: USER_CREDIT_CHECK1
LVKMPFZ2: USER_CREDIT_CHECK2
LVKMPFZ3: USER_CREDIT_CHECK3
And trying with that also but looking for any other solution if it is available..
And using another Sales Document Type is not possible in this case..
Any inputs...?? anybody???
Thanks..
HP

Credit Management (Open Items and Oldest Open Items)

I have 2 questions.
1)What is the difference between Open Items check and Oldest open items
2) I want to activate a Credit management check which should work in way that the Order will be blocked on the basis of Payment term check
Let say if I am using the Payment terms 0001 i.e Payment immediately due net .now what I want is that if I post the first invoice system as configured will check only the Credit check againt the credit Limit but when i post the 2nd invoice on the same day and the first invoice is not cleared system should give a warning message for it .
Currenlty as i Configured it working but not for the same day option its give a warning on the 2nd day's invoice
SO Need the help of Experts.
Thanks in advance

Hi,
Open items check means it will consider all the open items when it is doing credit check. Here it adds all the open items amount and do the credit check..
Oldest open item means it will consider only the oldest open item and based on tht i will do credit check..Here i will check the oldest open item value and its date then do the credit check..
Coming to payment terms check, system is responding correctly.. because payment terms are immed due net. tht means still time is there in the same day. that is the reason it is not blocking the second document.
once move to 2nd day then it means first doc is not cleared tht is the reason it is blocking the 2 nd doc on 2nd doc..
Hope u have understand..
Regards
Sankar

Use of Letter of Credit(LOC) in Credit management.

Hi,
How can i link LOC to Credit management?
I have a requirent suppose I have set a credit limit of 100000 for a customer.
I have received down payment of 20, 000 and there is LOC of 80, 000 then my system should consider downpayment(Which it will consider in special liabilities in fd32) and LOC value when checking the credit limit.
Is it can be done through standard process or will have to go for any user exit ?
Manish

Hi
U can go with the standard.In Sale order at Header level in Billling Documents after giving the Fin.Doc No.we have a field Depreciation % which specifies what amount has to be calculated from the LOC. in your case enter the value 80000 which covers from LOC and the remaining from credit master record.
Hope this will helpu.
Regards
Sujith

Credit Management + Unit of Measures

Hi Gurus,
A Peculiar issue with Credit management corresponding to UOM
1. Goods are sold in Crates[UOM], Where 24 EA = 1 crate. User maintains condition record for eg 1EA [uom is EA]. In sales order
processing, pricing is calculated EA, eg if given 1 crate, system calculates for 24 EA, it is correct.
2. But Credit management considers only Crates - Eg if given 1 crate, credit amount should be updated with 24 EA value, instead it is updating with 1 EA value.
Please through some light on this area..
Regards
Praveen Kumar...

hi Chandra Mukherjee
Definitely, i ve tried and it works. But there are lot of conditions maintained in EA, user is not accepting to change all the records because sometimes they sell it is EA too [loose, FOC etc]. That is the reason we cannot maintain in Crates.
Praveen....

Credit Management- FD32

Can anyone pls tell me, how the value against the field "Sales value" is getting calculated/reflected in FD32 , for a particular customer?
For a particular customer, there are NO open SOs ( in VA05),but still some value is reflected in FD32.
Request an expert, who has worked in credit management to help me on this.
Rgds
Sumanth G

HI
Sale Value = Open OrdersOpen DeliveriesOpen billings
If you want to know clearly
Go to FD33 , enter the details and press enter , in the overview screen , Extras-->Sales value
Regards,
Prasanna

Special Liability Issue in Credit Management

Dear all,
A down payment was cleared against an invoice last year. But that value is still showing in the credit management Special liabilities. Special liabilities in CM show value Total of the special G/L transactions which are to be taken into consideration when checking the credit limit. The orders are being blocked because of this. what should i do?
Regards,
shahzad khero

Hi Shahzad Khero,
I also facing this problem, the Special Liabilities amount is exist, but cannot be found under t-code FBL5N with special G/L indicator checked.
Would you mind telling me your solution?
Thank you very much.
Terry

Credit Management : SD/FI/MM?

I have a the following requirement & need your expert opinion, is it possible to have solution or not.
1. Customer X has Credit limit - 10 laks ; this has been given thru FD32 : I invoice 14 lakhs every month
now the same customer is a vendor for me. I buy material for worth of 5laks every month.
my requirement when the custmoer credit liimit exceeds and not allowing for delivery until & unless mannual increase credit limit from 10 lakhs to 14 lakhs thru fd32, but at the same i have vendor outstanding amount of Rs.4lakh on account material bought by me. is it possible without enhancing the credit limit can the vendor outstanding is connected to customer credit management so that without increasing in credit limit i wanted to deliver/invoice.
kindly let us know whether this is possble to attach in customer account the vendor account so that the credit mangements takes automatically and allow the billing to maximum outstanding amount including credit limit which is already assigned.
please help
thanx in advance
srihari

Hello Srihari,
Please try this:
The answer to you is so sipmle..you dont have to woory abt it...SAP is having all the provisions for it when they ve designed it...
Simply go the the csutomer master , and select control data tab...enter the vendor number there,,remember this should be the vendor which you want to adjust his account with. Now go to company code data and check the option "Clearing with vendor" .
Simillarly go to Vendor master, and control data tab, enter the customer number there. Also go to company code data, and check the "Clearing with customer" checkbox.
By doing the above simple configuration, you can be able to offset the amounts receivables/ payables between ur vendor and customer. This will be useful in cases where the customer acts as a vendor or vice versa.
I have taken the above text from the last message in the thread:
credit management for linked customer and vendor
Try it & Let us know.
THanks,
Jignesh Mehta

A small doubt in credit management

hi,
i have a small query related to credit management,
Eg: For customer XXX there is 1000/- as credit limit. He has used all the total amount which is shown in credit exposure 999%.
How the system behaves or what is the impact on credit exposure that is 999% for this customer when it comes to raising of credit memo request to the same customer let's take credit memo request value is 100/-.
please explain.
regards,
balajia.

Hello Friend,
See basically the Credit Management Works as:
1. Every Invoice & Debit Memo increses the Debit Amount which is Receivables from Customers. Thus this increases the Credit exposure.
2. Every Credit Memo decreases the Debit Amount (as it is a Credit entry) which decreses the Receivables from Customers. Thus thus this reduces the Credit exposure & the percentages...
Hope this clears...
Thanks,
Jignesh Mehta

Credit Managment @ Sales Order

Dear Experts,
I have created sales order with which customer is holding credit management. Let say the customer credit limit 1000 RS. I have checked in FD32. After that i have created sales order with 300 rs and created delivery also. After that again i have checked the customer management status in FD32. Here order value supposed to come 300 rs right. but its not coming. After that created invoice then again checked customer management status in FD32 there receivables got 300 rs. Only things is when i created sales order and delivery (witout creation of invoice) in credit management status order value also has to come but its not coming. Its directly goes to receivables option in FD32. Could you please suggest me where i did mistake. Do we need to maintain that credit control area in Sales Order. If we need pls let me know. Bcoz i couldn't findout credit control area option in the sales order.
Thanks in advance,
VS

HI VS,
Please find below the explanation regarding updation of credit values to sales orders, deliveries & billing documents:
Update for sales orders:
The open sales order values are updated in the information structure
S066. When the credit value is calculated, the open schedule line
quantity (VBEPD-OLFMNG) is multiplied with the item credit price
(VBAP-CMPRE).
The open schedule line quantity is the confirmed quantity of the
schedule line that is still open for delivery.
The credit price is defined in accordance with the settings in the
pricing for the item.
The material availability date of the schedule line (VBEP-MBDAT) defines
the period in which the open sales order value is updated. You use
transaction OMO1 to define the period unit for the information
structures.
If an item has no confirmed quantity (VBEP-BMENG), the system does not
update an open sales order value.
This also occurs for documents that are blocked by the credit check. As
a result of the credit block, the confirmed quantities are deleted so
that an open sales order value can no longer be updated.
When sales orders with a credit block are released (for example, using
transaction VKM1), a new availability check is performed. If the
availability check can confirm the quantities, an open sales order value
is updated accordingly.
Conclusion: Credit blocked documents do not increase the open credit
values.
There are exceptions to these rules:
1. Sales order items which are not relevant for delivery and do not
    have schedule lines relevant for delivery are not updated to S066
    ('Open sales order credit value') rather to S067 ('Open delivery
     credit value'). You can find further information about this in Note
     361637. Also refer to Notes 120645 and 128350 concerning this topic.
2. You can use requirements to delete confirmed quantities in credit
     blocked sales orders. These requirements are defined in transaction
     VOFM under the menu path 'Requirements -> Subsequent functions ->
     ...'. The system asks you for a credit status in the respective user
     requirement. If this is set to 'Blocked', the system cancels the
     confirmed quantity. You may want the system to behave differently.
     If this is the case, you can store a separate requirement which does
     not cancel the confirmed quantity. As a result, the sales order item
     has a confirmed quantity again and consequently, it updates the open
     sales order value although the document is credit blocked.
     For NON-MRP materials (materials without requirements planning), the
     system does not cancel the confirmed quantity despite a
     corresponding condition, as described in Note 393304. For further
     information about this, refer to Notes 674112 and 914627.
3. A delivery block in the sales order affects the update of open
     credit values. For more information, see Note 741980.
Update for deliveries:
The open delivery values are updated in S067. The update does not occur
in time units. There is only one entry in S067 for each credit control
area and credit customer.
If you create a delivery with reference to a sales order, the system
clears the open sales order value in accordance with the delivery
quantity (from S066) and posts the open delivery value for the delivery
(to S067).
Deliveries with credit lock also write open values of goods to be
delivered. Here, it is not possible that a credit-blocked document does
not create an open credit value (as in the order). This is also correct
from a business view, because the delivery already blocks the goods, and
the value of the goods is therefore already consumed for the credit
customer.
Update for billing documents:
The open billing document values are also updated in S067. Also in this
case, only one entry exists for each credit control area and credit
customer.
If you create the billing document with reference to a preceding
document, the system clears the open credit value in accordance with the
invoiced quantity for the preceding document and posts the open billing
document value for the billing document (to S067).
If you transfer the billing document to accounting, the system clears
the open billing document value (from S067). Now the value has been
transferred to the open items and occurs as a receivable from the
viewpoint of credit management.
If the incoming payment occurs, the receivable is met and the
consumption of the credit limit is reduced.
Kind regards,
ALV Ramana

Letter of Credit functionality and Credit Management

Hi,
we want to use Letter of Credit functionality for exports.
Currently, we have an ERP system that contains the sales data. In a separate system we have the credit management functionality (Financial Supply Chain Mgt - FSCM).
When order is created, the credit limit is checked in the FSCM system (via PI messages).
Now, we want to link some of the Sales orders with Letter of Credit. I believe, this is standard functionality in GTS.
So when Sales Order is created a LOC should be connected to this.
Can the GTS be connected also to FSCM credit management, so credit limit is not affected?
Example:
Sales Order value: 1 Mio USD
10% down-payment > this would be in the credit exposure visible (net exposure).
90 % covered through LOC > credit exposure should showing this, or it shows order value and in a negative figure this amount deducted so no effect on exposure.
Down-payment has no relation to LOC. When money is received for this the net exposure of the sales order is 0.
partial invoice: 0.4 Mio USD > it should be possible to link this invoice to the LOC. The posting FI document should have some LOC information, so when payment comes in the amount in LOC is reduced as well as in credit management this open.
Final invoice 0.5 USD: as above, all values go out from exposure if there are any.
A second case would be guarantees, where there is no reduction of values. This would stay same.
Anyone who can advise a solution here?
Thanks + Regards
Hein

Letter Of Credit can be used as a standard solution of SAP GTS with ERP solution. Yes you can connect both SAP & no SAP systems with GTS, but plugins, PI etc needs to be built in. But it would not be real time like RFC works. There are some standard available which needs to be hard coded to meet specific requirements.
Connecting LOC to Sales Order, invoice etc, is manual, based on business specific parameters and it comes standard with SAP GTS. Maintaining Values & Quantity of LOC based on actual LOC from bank is also possible. The depreciation of values & quantities is also standard with in LOC in GTS.
You can also setup various communication methods for LOC.
I think when Invoice is raised and payment is received the LOC should be closed in the system. There can also be other scenarios where in system determines LOC based on predefined logics for determination strategy put in to the GTS system.
Cheers,
Abir

Credit management and credit exposure

Hi experts,
Pls anybody clarify my doubt in Credit management.
I activated the credit control areas update as 000015(Open delivery and billing document value).And activated dynamic credit management "Automatic credit control".Now i explain with some example how it working. Fixed credit limit for customer A Rs.30,000/-, Receivables amount 22,000/-. Now if create a sales order for value >8000 i m not getting the credit lock waring messages.
(I.e) i am creating one sales Order for value Rs.9,000/-.(So credit limit crossed and not getting error msg or waring messages)
After that creating another sales order for same customer i am getting Warning msg like"Credit limit crossed_____amount".
So finally, CCR Rs.30,000/, Recei Rs.22,000/- but i can able to make even Sales Order value for Rs One lakh. I want here to block sales order should not be create.
Thanks in advance.
SR

When a sales order is created , only the confirmed quantity is taken for pending sales value even if sale order qty is more
Check OVA8 setting , open deliveries and open orders should be selected
You can set reaction status as warning or error.
Pricing procedure - Subtotal should be A . This will update structure s066
The above condition will work only for order creation . For sales order ammendment you have do the same setting for credit group 02.
If Dynamic credit check works with credit Horizon date . It is better to have static credit check.
Check MC30 after creating sales order whether structure s066 updated for the order.
check and confirm
Senthils

Credit management requirement

Hi,
Guys i have the b/m requirement w.r.t. credit management.
i am very confused on the same.
-.The credit period of 45 days from the date of placing the order(i.e sales order) will be admissible to the customers of the company.
-. Customer will be required to issue a post-dated cheque on the due date of payment for 95% value of the order.
& The order will be taken for production by the plant only after post dated cheque for 95% value of the order has been received by the branch and confirmed to Head Office.
-.The balance amount against the supplies received by the BP against the purchase order shall be payable after the receipt of the goods by him. This outstanding amount shall be a part of credit limit.
-.At no given time the total credit exposure (including the value of post dated cheque) against BP shall exceed 50% of the invoice value to him in preceding 90 days. In case the business partner has already utilized the credit limit agreed for him, the supplies will be made against cash payment only.
-.If any payment is received from BP in less than 45 days, he shall be entitled for credit note @ 1.5% per month.
CAN ANYBODY HELP ME TO MAP THE SCENARIO IN SAP ON THE SAME.
Rgds

Hi,
For credit period of 45 days. configure payment terms.
SAP does not have a solution for post dated cheques. However you can use F-49 - Noted Items for post dated cheques.At the end of due date, use F-28 - incoming payments.
For Credit Limit, Configure Credit Management,Refer to this website.
http://www.sap-img.com/sap-sd/credit-management.htm
In case of cash payment, you can use F-28 or F110, you have to use cash GL Account.
Please let me know if you need more information.
Assign points if useful.
Regards
Sridhar M

Clearing amount calculation in Credit management

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