Credit Management with advance payment

Hi,
We have credit management scenario with advance payment.
In most cases the customer pays an advance. This advance may / may not be against a specific Sales order. At the time of checking the Credit limit, the system has to check the customer advance account as well.
We have 2 types of products u2013 standard (fast moving products) for which there is a min stock defined. There is also a non standard product for which there is no min stock defined.
When a customer places order for standard products & pays an advance against that, this advance may be used to deliver any product in any sales order for standard items. Hence for standard products advance is not linked to a sales order.
However, in case a client places an order for Non standard product & pays an advance against that order then that advance cannot be used to deliver a standard product.
This is to ensure that if advance is paid for non standard profiles, then advance paid against that should not be used to clear orders for standard products.
This can be administered correctly by locking an advance received to specific sales orders. This can be done at the time of receipt of advance & order confirmation.
If this is possible then please suggest step by step configuration.

Hi
If the credit limit is specific to only few customers who pays in advance then you can go with dynamic credit check.
Please go through this link which will help you for configuration
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4d/4653b0cfd70692e10000000a42189b/frameset.htm
Regards
Srinath

Similar Messages

Credit management for advance payment

Hi
If the customer pays any advace system have to consider that amount also for credit check
the example as follows
customer credit limit 300000 as on to day
customer receivables 300000 as on to day
customer advance 200000 as on to day
If i create the sales order for 10000 to day, system is blocking the order to deliver because of credit limit exceed, what i want to do if the customer having advance it should not block the deliver.
regards

Hi,
Go through through this thread,
Credit against advance payment
Thanks,
Swamy H P

Link with blocked sales order with advance payment

Hi Gurus,
I have a scenerio, where, due to a shortfall of customer credit balance, system blocks the sales order and upon receiving an advance payment from the customer, i would like to know if the system can validate that, an advance has been received and can inform the user that advance received against the blocked sales order. So that, instead of manually releasing the blocked sales order user gets to know whihc are the sales orders to be released first and based on which system can allow the user to release first the blocked sales order and then the subsequent sales orders are processed for credit check.
Is there any exit or what is the enhancement that can be implemented for having this scenerio mapped.
Text Removed
Edited by: Lakshmipathi on Mar 17, 2011 8:57 AM

If you dont maintain any sale order reference and execute VKM3, system will populate all blocked sale orders. There users can select the required sale order and release it and I dont think, for this purpose, an user exit is required. You can also even consider VKM1
Still if you feel that it is required, you can try with any of the following user exits.
1) LVKMPFZ1: USER_CREDIT_CHECK1
2) LVKMPFZ2: USER_CREDIT_CHECK2
3) LVKMPFZ3: USER_CREDIT_CHECK3
thanks
G. Lakshmipathi
ps:- Please dont offer anything

Credit Management with Letter of Credit.

Hi Gurus,
We need to consider the "Letter of Credit" amout in credit management.
ie. if there is LC created on customer worth Rs. 5lacs, system should not block the sales order unless 5 lacs is consumed.
Pls suggest any workarounds.
Reg.
Amol

Dear Amol Tamhane,
Have not worked on 'letter of credit'.
But if there is any accounting document which gets created due to letter of credit, then you can use the exit for credit management in SALES ORDER LEVEL and write the code to BLOCK THE SALES ORDER ONLY IF
(CREDIT LIMIT + LETTER OF CREDIT AMOUNT ) - (PREVIOUS EXPOSURE + SALES ORDER VALUE ) < 0
You can check BSEG, if accounting document gets created for 'letter of credit' or you can check any tables related to letter of credit based on customer code.
Thanks & Regards,
Hegal K Charles

Credit management with different sales organization

hi,
one cusotmer master code with different sales area, can i separate the credit limit? pls advice. thanks

Dear Friend,
Pls proceed as follows for implementaing credit control at sales Area level:
1.Define two control Areas e.g C1 & C2 in enterprise structure(Definition)
2.Do not assign the Company code with control area howver keep the "overwrite CC" tab checked (SPRO-Assignement of control area with company code)
3.Assign Sales Area e.g S1 & S2 with control Area C1 & C2
4.Now define credit limit in FD32 for customer in control area C1 & C2
Pls note the control area will be derived automaticaly in case of sales transactions however while posting thru FI control should be a mandatory field in all transactions affecting cutomer ledger balance.you would be required to take help from Fi for this.
Following areas of FI needs changes:
1.Incoming payment & down payments
2.Credit or debit notes
3.Manual clearing of payments with Invoices.
Pls do ask if any other calrification is required.
Regards
Sanjay

Credit Management with AR and SD

Dear FI Gurus,
Please solve my problem.
I am SD consultant and did all the settings for automatic credit control. It was successful. The message used to come that the dynamic credit limit exceeded.Myversion is mySAP2005
After that I went to F-28 and using the cash transactions I posted some payment for one customer and cleared all the outstanding invoices.
After doing this , now whenever I am doing a sales order the credit mgmt is giving the following message for the exceeding of the Credit Limit as follows:
"Check AR summary has exceeded time limit: exceeded by days/hrs"
The system is blocking the document and I am able to release the same.
Problem is that I want the usual message " Dynamic Credit Limit exceeded for this Customer ".
Can you please guide me as to how to get rid off this error. On the SAP Help I got help that was for older versions.
The message no is V1669.
Can someone help me.

Hi,
You got this message because you set check for "Permitted aging of A/R summary" on OVA8. And you also chose to create AR summary on table T000CM.
You can do one of following:
1. on OVA8, make "permitted days and monthes" blank.
2. delelte entries in table T000CM
3. Make "permitted days and monthes" longer, and delete and re-create AR summary by FCV2 and FCV1.
Hope it helps.

Credit management activation with letter of credit

Hi Sap guru
I have one queries regarding customer credit limit effect with LC document.
If i creating one LC document for customer after assign to sales order for that perticular customer, it should effect the credit limit of that customer.
In which field it should effect the custmer credit master FD32.
in secured liability field , secured receviable field , or the receviable field .
Can any body tell ,me what is the process of LC attachment with sales order if the credit management is active in company code , and what is the effect in customer credit expouser.
Thanks in advance .
Regards
Anjan Kumar Jha

Hi Anjan
It is the aim of every credit policy to reduce the risk represented by customer receivables.
Along with Credit Management, several other Payment Guarantee Forms within the
business processes are explored. These include letters of credit and payment cards.
These payment guarantee forms differ in the level of security they can offer and are all
integrated within Risk Management.
When a payment guarantee is used (for example, a letter of credit), the system first tries to
provide the optimum in risk minimization. If this is not possible, then Credit Management in
a second step is used to create a credit limit and therefore restrict the level of risk.
Letters of credit are used predominantly for large -scale export transactions, whereas cre dit
while Cards are more important for Retail transactions.
You create a Letter of credit by using VX11 after creating that you assign that in billing tab of sales order in risk Management Financial doc number.
keep in mind the incoterms of Letter of Credit and Sales order should be same.
Reward if helpful
Thanks & Regards
Abhishek Swarup

Down payments u2013 Credit Management, Sales Value FD32.

Hi,
We have a problem with the credit management in Down payments. The down payments requests are not decreasing the Sales Value of the client. I mean when I bill a down payment, the sales value of the client in transaction FD32 keep with the same value. I have to bill the next milestone where the down payment is cleared to decrease the sales value of the client.
Billing Plan
1º Down payment 200
2º Final Billing 1000
Bill the down payment. Sales Value FD32 = 1000. It should be 800?
Bill the Final Invoice. Sales Value FD32 = 0.
Are there any way in the customizing to modify this behavior?
Thank you in advance and best regards.

Hello Alberto,
As you mentioned down payment of 200 and final bill of 1000, generally down payment is received at the start of activity. If you have credit limit say 500 and you receive down payment of 200 then system store down payment in separate GL account and when you carry out business, system first consider consuming down payment and then credit limit. So down payment never consider as sales till it get cleared off as it is before start of business as extra security to manage risk
Same thing happen when you do business with letter of credit
Hope this will resolve your confusion
Regards,
Mukul

Credit managment against payment terms and credit limit

Dear All,
I have two query against credit management
1 Can We maintain credit managment as per payment days. My client want system should give bolck as per payments days,say if payment terms is 30 days and within 30 days customer has not made payment against invoice so sales order should block. ( sales order will create but shown as block)
2 Credit block with ref to credit limit given to customer, they want credit block with reference to open order.open delivery and open invoice. Means system will check all open order,all open deliveries and all open invoice while considering credit limit.and give the block accordingly.
I am sure about credit limit but how to give block according to payment days (payment terms) and how to give path to check all open order,all open deliveries and all open invoice.
waiting for you valuable input.
Thank you
SD Consultant

Hello,
In OVA8, for the combination of credit group & risk category you maintain the following
(1) CHECK against DYNAMIC with reaction C & TICK in BLOCK
NOTE:path to check all open order,all open deliveries and all open invoice is maintained in OB45 (update 000012)
(2) CHECK against OLDEST OPEN ITEM with reaction C & TICK in BLOCK
(do not maintain any value in DAYS OLDEST ITEM, but maintain the payment terms in the Customer master)
for example, block as per payments days,say if payment terms is 30 days and within 30 days customer has not made payment against invoice so sales order will be blocked.
In both the cases ( credit limit and credit period,the sale orders blocked , can be released by VKM3.
Regards,
Hegal

Advance Payment

Dear All
can anyone pls explain how to deal with Advance Payment Receipt in ISRetail (Without a billing Plan) and if its cancelled without delivery ,subsequently i have to raise a Credit note for that customer pls advise me how to go about

At the time of Advance Payment PO no is maintainted .
MM guy take the Print out (There is no Std u hav to develop)
Then FI guy do the Posting.
Then Rest process U know.
MIRO is done By FI.
I hope now ur Clear.
Regards
Biswajit

Issue In Sales Invoice DTW with down payment

Dear Friends,
I am trying to add some Sales Invoice with advance payment by DTW.
Entries of Sales order , Sales Advance Down Payment request & Payment against Advance Down payment request are already done.
In Invoice master file for DTW I add down payment amount in DpmAmnt.
Invoice was successfully uploaded but link between down payment & invoice is not generated.
But link between Invoice and Sales Order is generated.
How to link Down Payment Entry to Sales Invoice in DTW?

Dear Swapnil,
After seeing your attached image file, can you please rectify the same in your system as I have done it successfully at my end. Please find below screen shot for your reference.
Please test it and let me know the same for any issue.
Regards,
Vinod Memane

Credit management information.

Hello gurus,
I am new to credit management with BW integration,please any one give me detail information about credit management Data Sources and info objects and cubes and ods.
I want to impliment credit management data sources right now and i want extract data from cm to bw. please any one provide me all the details about credit management flow from R/3 to bw.
Thanks,
Raju
Edited by: sekhar reddy on Apr 27, 2009 10:13 AM

Hi Shehar,
check this note..
[For Credit Management Extractor|https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/com.sap.km.cm.docs/oss_notes/sdn_oss_bw_bct/~form/handler%7b5f4150503d3030323030363832353030303030303031393732265f4556454e543d444953504c4159265f4e4e554d3d363139343534%7d]
and
http://help.sap.com/erp2005_ehp_04/helpdata/EN/e0/4d382e6c474e4cb66cb7014407eb28/frameset.htm
thnks.

Implementing Credit management without AR

Hello,
Is it possible to impliment the Credit Management with out the AR module?
we are using the Oracle apllication for AR,
Just when creating orders in SD i want the credit check to be started
Thank's
Yehudit

Hi,
Please check the following links
[Credit Management|http://help.sap.com/printdocu/core/print46c/en/data/pdf/FIARCR/FIARCR.pdf]
[SD Credit Management Wiki|http://wiki.sdn.sap.com/wiki/display/ESpackages/Credit+Management]
[SAP Library|http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/00a9015a-3664-2e10-5bb2-a3ab2b61f5d8?quicklink=index&overridelayout=true]
Kindly close thread if answered.
Regards,
Amit

Credit Management - XI Content

Hi All,
We need to integrate Credit Management with XI. From esoa.sap.com we got to know the software component version to be imported in IR is ESM INTEGRATION 1.0. But we are unable to download the Software Component Version from service.sap.com. If you can access the tpz file. Kindly let me know how to access the same.
Thanks,
Jaishankar

hi check the belwo links
https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/f00870f1-7a55-2a10-fc97-eb93eb75a8bd
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/docs/library/uuid/90e1b3a2-0a01-0010-bcb7-98519b198db4
pls reward points if solution found helpfull
regards
chandra.k

Credit management and Terms of Payment

Hi
Can anybody throw some light on the role of Terms of Payment in .Credit Management.
Thanks in advance
Ravi

Dear sankar ravi,
Credit management
Purpose
Outstanding or uncollectible receivables can spoil the success of the company greatly. Credit Management enables you to minimize the credit risk yourself by specifying a specific credit limit for your customers. Thus you can take the financial pulse of a customer or group of customers, identify early warning signs, and enhance your credit-related decision-making. This is particularly useful if your customers are in financially unstable industries or companies, or if you conduct business with countries that are politically unstable or that employ a restrictive exchange rate policy.
Integration
If you are using the Accounts Receivable (FI-AR) component to manage your accounting and an external system for sales processing, Credit Management enables you to issue a credit limit for each customer. Every time you post an invoice (created in FI-AR), the system then checks whether the invoice amount exceeds the credit limit. Information functions such as the sales summary or early warning list help you to monitor the customers credit situation.
If you are using both the Accounts Receivable (FI-AR) component to manage your accounting and the Sales and Distribution (SD) component for sales processing, you can also use Credit Management to issue credit limits for your customers. You can make settings in Customizing to decide the scope of the check and at what stage in the process (for example, order entry, delivery or goods issue) a credit limit should take place. General information functions are also available for use with credit checks.
Features
If you are using both the SD and FI-AR components, Credit Management includes the following features:
Depending on your credit management needs, you can specify your own automatic credit checks based on a variety of criteria. You can also specify at which critical points in the sales and distribution cycle (for example, order entry, delivery, goods issue) the system carries out these checks.
During order processing, the credit representative automatically receives information about a customers critical credit situation.
Critical credit situations can also be automatically communicated to credit management personnel through internal electronic mail.
Your credit representatives are in a position to review the credit situation of a customer quickly and accurately and, according to your credit policy, decide whether or not to extend credit.
You can also work with Credit Management in distributed systems; for example if you were using centralized Financial Accounting and decentralized SD on several sales computers.
Hope this helps you.
Do award points if you found them useful.
Regards,
Rakesh
P.S. you can send me a mail at my mail id [email protected] for any specific details

Credit Management with advance payment

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