Type of credit check

HI,
Could anyone explain to me about type of credit check specially "Credit check on the basis of overdue open items" ?
Thanks & Best Regards,
Saiful arif

Hi,
There are 2 main types of credit check:
1. Simple Credit check
2. Automatic check
Simple credit check behaves in the same way for all the customers & hence is not used frequently.
Automatic credit check allows you to control different customers in different way with respect to their payment history (good payment master/bad payment master). The control is done for the combination of "credit control arearisk categorycredit group". You use transaction code OVA8 for the control.There are many types of automatic credit checks:
Before that I would like to explain some terms:
open sales orders: delivery not done for any item in the sales order
open deliveries: invoice not done even for a single item
open invoices: accounting document not yet generated
open line items: when the system generates an accounting document for an invoice, it generates a line item which is displayed in the transaction code FBL5N. Here you see against which invoice, how much is the A/R (accounts receivable) amount. Open line items means the payment has not been received for this line item.
Types of credit checks:
1. Static credit check = 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)
2. Dynamic credit check: 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, the system will 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.
3. Document Value: The sales order or delivery value may not exceed the maximum value that you specify in the adjacent field. The value is stored in the currency of the credit control area. This type of credit check makes sense, for example, if you process orders for new customers whose credit limits have not yet been defined. The check can be initiated by a risk category which is defined specifically for new customers.
4. Critical fields: The indicator controls the critical field check. If the field is selected, the system checks whether critical fields have been changed. The critical fields are as below:
*Payment terms
*Additional value days
*Fixed value date
Use this type of check for sales documents only.
5. Next Review Date: The next credit review date is stored in the credit data in the customer master record. When you process a document, the next credit review date must not be beyond the current date.
6.Open Items: This type of credit check works in conjunction with two values that you specify in the adjacent fields:
*Maximum % of overdue items in open items
*Number of days which the open items are overdue
The proportion of overdue open items (that exceed the specified number of days) in the total of open items should not exceed the percentage specified.
7.Oldest open Item: system carries out a credit check based on the age of the oldest open item. The oldest open item must not be older than the number of days specified.
8. Highest Dunning Level: With this type of credit check, you specify the highest dunning level you want to allow in the adjacent field. The dunning level is tracked and stored in the credit data in the customer master record. If this level is exceeded during order or delivery processing, the system carries out a credit check.
Dunning means the follow up with the customer for receiving the payment.
9. User Specific: Used for user specific credit check if it is noe fulfilled through first 8 options.
Overdue Open Items: You enter a payment term in the customer master - sales area data - billing screen. The payment term is suppose "within 15 days" & the baseline date (date used by system to calculate due date) is say posting date.
If today, i.e on 21/08/2008, you create an invoice & accounting document also generated (which will generate a line item in FI-A/R statement), the system will determine the due date as 04/09/2008. If the payment is not received latest by 04/09/2008, the line item will automatically become overdue. In the first field the system asks for Maximum item percentage which is calculated as under:
"X" = (open items which are more than a certain number of days overdue / customer balance )
customer balance is according to me the adjacent field, i.e "Number of days for considering open items".
Say if "X" = 1 & after creating some time if the system calculates that the value has exceeded "1" then it will block the sales order for credit check.
Hope this gives you a clear idea.
With best regards,
Allabaqsh G. Patil.

Similar Messages

Credit check status in MV45AFZZ

Dear All expert,
I want to do update a custom table in MV45AFZZ when the order passed credit check.
But I do not know , is there any indicator about the result of the credit check?
I mean some field or table stored those kind of data.
Many thanks in advance!

Hi,
We do have this data available. Check the field VBUK-CMGST(Overall status of credit checks). You can directly use work area VBUK.
Below are different statuses.
space               Credit check was not executed/Status not set
A     Credit check was executed, document OK
B     Credit check was executed, document not OK
C     Credit check was executed, document not OK, partial release
D     Document released by credit representative
There are different types of credit checks. Just search in table VBUK with "credit check". You can see different fields. But in your case, you need overall status i hope.
Table VBUP gives you item level statuses.
Thanks,
Vinod.

Automatic V simple credit check

what r the advantages of automatic over simple credit management

Simple credit limit check
A credit limit check can be carried out when sales documents are created or changed. The check is carried out within one credit control area. When changing a document, the check is repeated if changes regarding quantity or value are made. A credit control area consists of one or more company codes. A sales document belongs to one credit control area depending on the allocation of the sales organization to a company code. The SAP System checks the credit limit which was granted to the customer in this credit control area. The credit control areas and the credit limit of a customer are defined in financial accounting and entered in the customer master record. During the check, the SAP System totals the receivables, the open items from special G/L transactions and the net value of the sales order for every item of a sales document. The open items take into account obligations bound by contract which are not recorded for accounting purposes but which involve expenses through diverse business transactions. The total is compared with the credit limit. If the limit is exceeded, the system responds in the way defined by you in the configuration menu.
Automatic Credit Check
The automatic credit check can target certain aspects during a check and run at different times during order processing. In this menu option, you can define your own credit checks to correspond to your requirements in the area of Credit Management.
You can determine an automatic credit check for any combination of the following:
Credit control area
Risk class (classifying attribute for your customers from the viewpoint of credit risk which is maintained in FI Customizing)
Credit group
Example
You can define a credit check for a certain credit control area and for all sales orders in which the customer has risk class 2 (RK2).
It is possible to define a system response for each credit check (for example, warning message). In the case of a warning message, a block can be set in the credit status of a document.
When you define automatic credit checks, you can also freely define requirements which cause a document or the forwarding of the material requirements to MRP to be blocked. This is described in the IMG section "Make default settings for Credit Management".
If you define your own credit checks, proceed as follows:
specify type of check
specify scope of check
specify system response to check
allocate credit control areas
define and allocate risk classes if necessary
allocate credit group
assign description to the credit check
Types of credit check
The following types of credit checks can be carried out:
Static credit limit check
Credit allocation depends on the total value of open orders, deliveries, billing documents and open items.
Dynamic credit limit check
The dynamic check includes both a static part which checks all open items, deliveries and billing documents and a dynamic part which checks all outstanding order values, that is, all orders not yet delivered or partially delivered. The value resulting from the checks is accumulated up to the shipping date in the information structure "S066" in freely definable time units or periods (day, week, month). This information structure is entered in Logistics Controlling and described in the section "Carry out default settings for credit management" under Basic functions.
To define the credit check, you specify a certain number of relevant periods from which a date in the future can be calculated (for example, 10 days or 2 months depending on the selected period). This ensures that sales orders which lie further in the future are not used to determine the credit exposure.
The total of the static and dynamic part of the check must not exceed the granted credit limit.
Credit check on the basis of the maximum document value
The sales order value or the value of goods to be delivered must not exceed a certain value defined for the credit check. The value is stored in the currency of the credit control area. In particular, this check is useful if the credit limit of new customers has not yet been specified. This check can be accessed explicitly by a risk class reserved for new customers.
Credit check when changing critical fields
The credit check is started when changes are made to credit-relevant document fields so that they differ from the default values proposed from the customer master record (terms of payment, value days and fixed value date).
Credit check at the time of the next internal check
The credit check is started automatically on a certain date. All sales orders entered up to this time are regarded as not critical.
Credit check on the basis of overdue open items
The ratio between open items, which are overdue by more than a certain number of days, and the customer balance must not exceed a certain percentage.
Credit check on the basis of the oldest open items
The oldest open item may only be a certain number of days overdue.
Credit check against maximum allowed dunning levels
The dunning level of the customer may only assume a certain maximum value.
Customer-specific credit checks
If you require further checks to those defined in the standard system, you can define them in the corresponding user exits (LVKMPTZZ and LVKMPFZ1).
Regards
Nadarajah Pratheb

Credit Management: Difference Between Static and Dynamic Credit Check

Hi,
Could anyone tell the difference Between Static and Dynamic Credit Check?
According to website: http://www.sap-basis-abap.com/sd/difference-between-static-and-dynamic-credit-check.htm ... this is the answer:
====================
Simple Credit Check : Tr.Code - FD32
It Considers the Doc.Value + Open Items.
Doc.Value : Sales Order Has been saved but not delivered
Open Item : Sales Order has been saved , Delivered, Billed & Transfered to FI, but not received the payment from the customer.
Static Credit Check it checks all these doc value & check with the credit limit
1) Open Doc.Value / Sales Order Value : Which is save but not delievered
2) Open Delivery Doc.Value : Which is delivered but not billed
3) Open Billing Doc.Value : Which is billed but not posted to FI
4) Open Item : Which is transfered to FI but not received from the customer.
Dynamic Credit Check         1) Open Doc
                                            2) Open Delivery
                                            3) Open Billing
                                            4) Open Items
                                            5) Horizon Period = Eg.3Months
Here the System will not consider the above 1, 2, 3 & 4 values for the lost 3 months.
====================
Question 1: Could you further explain the above information, if there is any?
Question 2:: What is the Tcode to customize settings of:
a) Simple Credit Check (isn't this same with b) below?)
b) Static Credit Check
c) Dynamic Credit Check

Hi Tanish,
Diff between Static and Dynamic Filters.
Example One at report Level.
Create a variable for a Infoobject say ,Material .
1)In the Query Designer and if u restrict it to some 10 materials at query level, the report will display for only those 10 materials only.This is Static Filter.UR AHrdcoding it to those materials.You cant change them at Query Run time.i.e not changeable by user.
2)If u give the variable as input ,and when u run the query ,u can can choose the material,may 10 may be 1 or may 20 .It is dynamic.Changeable by user at run time
Example Two at DTP and Start Routine Level,say Document Type.
1)If u give filters in Start routine it is Static as u cannot change it in Production,not changeable by user.
2)f u give filters in DTP it is Dyanamic as u can change it in Production.U can give any doc type,Changeable by user at run time.
Hope it is Understood.
Rgds
SVU

Expired Scheduling Agreements still in Credit Check / Rescheduling

Hello everyone,
I am running into an issue with expired Scheduling Agreements on the SD side (VA31,VA32, etc.). There are many Scheduling Agreements that expired on a range of dates from 2005 to 2009, SA's that customers will not send JIT delivery schedules for anymore and are basically just out in the open and unused. The issue is that these Scheduling Agreements are still being taken into account when a credit check is run. Additionally, when our rescheduling jobs run at off-hour times, the system is still attempting to allocate materials to these orders. The main problem with this is that it causes additional processing time for the rescheduling job.
The current business process for these old Scheduling Agreements is to reject all the line items within the applicable SA, and as a result our rescheduling jobs avoid these orders, and they do not show up in VKM4. However, the Valid To date in the SA is clearly in the past and I'm wondering if there is a way to have these closed without having to reject every line item.
Any help would be greatly appreciated.

Andy
For credit check I would recommend:
1) Using your own routine to exclude expired sch agreements in OVA8- Document controlling- 'No credit check' field.
2) rejecting at header level/ using "mass'.
For Rescheduling
1) Using button "Unconfirmed documents required" checked.
2) Creating your own copy of the program SDV03V02 including document number, document type in the selection fields and creating a variant excluding specific, expired Sch Agreements. To reduce processing time, you may also try the 'divide and rule' policy and execute several parallel/serial runs by using ranges of materials, plants, document types. I am sure you might have already tried this.
Hope this helps.

Sales Order Credit Check after Booking

Hi Gurus,
I have to meet the below requirement in Sales order entry:
Credit Check is enabled during Booking of the sales order. A sales order is entered now with one item and 10 numbers as quantity. While booking, the system checks for credit limit and the order is now in 'Booked' status. Now, when I change the quantity to 15 from 10, the system has to again do the credit checking process. Can this be achieved using functionality like processing constraints or any other? If so please elaborate me the setup required for the same.
Thanks
Best Regards,
Prasad Dhanakodi

Hi Prasad,
When defining the Transactions Type, you need to define the Credit Check Rule when it fires like BOOKING/PICKING/SHIPPING/PAKCING.
Navigation--> Order Management Responsibliity-->Setup-->Transaction Types-->Define
Thanks & Regards,
Srinivasulu Vakati

How to Block a Quote on Credit check and prevent suseqquent functions

Hi,
The client wants to prevent the Quotations which are blocked due to credit check to be turned in to sales order.
We are maintaining credit group 40 , assigned it to quote, and maintained records in Fd32 and ova8.
The item categories have been checked for credit check.
After all these, when a quote is blocked, we can see it in vkm1 for release.
But, it allows to create the sales order with reference to the blocked quote.
Can anyone please help me in resolving this?
P.S. The client wants to do this at Quote level because they are using Assembly processing. Since it is not possible to prevent creating a production order even though the credit check has been set for sales order (Client uses 90% of KMAT's (Item cat-TAC) and Assembly processing (Strategy group 82) with VC.)
Any suggestion to achieve either one of the above will be appreciated and Rewarded.
Thank You,
Manoj.

Hi
Please try this way...this is a guess and let's see if it works.,
Define a new Credit Group (say 04) for Quotes.
Assign the new Credit Group for the QT document type
In the Define Automatic Credit Control - make the necessary assignment for the combination of
CCA - Risk Category - Credit Group
Check the functionality by creating the Quote for an amount exceeding the credit limit and referring it for creating the sales order, which shouldn't be allowed.
Thanks,
Ravi

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,

Credit Check

Dear All,
I have a requirement in credit management,
A sales order should block either customer credit limit of Rs.1,00,000 is exceeds or any open item exists more than 30days. I am trying this using automatic credit control with the options of static check and oldest open items with 30 days. Then system is responding properly for the open items more than 30days but not responding if credit limit is exceeding Rs. 1,00,000.
Please suggest me how to overcome this problem.
Regards,
Kartheek.

Hi Kartheek,
Goto "OVAK" T.Code.Maintain entry for your sales document type.
You can select option "B" for simple credit check and as a result of it you will receive an error message.If you maintain "A",you will receive a warning message.If you maintain "C",it will set a deliveryblock there.Like these options are there.Choose the option that is required for you.
And maintain your customer credit group also.
Regards,
Krishna.

Credit Check on Sale Order

Dear Friends,
Right now the credit check is on Delivery Order. It displays error message when doing PGI for Gross Value (Price + Tax). Now I want to do it for Sale Order Level.
I did all changes according to the following; but on sale order the error message is only for (Price). It is not including tax value. Your assistance is required....
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_SAPFV45K_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:
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. You can
use Transaction FD32 to assign this risk category to a credit account.
10. Transaction OVA8
Here, the individual credit checks for key fields
- credit control area
- risk category
- 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. You want the item to be relevant for billing. If an item is not
relevant for billing or for pro forma billing, no update occurs.
14. 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:
15. 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':
16. 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:
17. 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.
Regards,
Shahbaz

Dear Lakshmipathi,
Yes, "A" is there.
Regards,
Shahbaz

Credit check at Delivery

For one of our risk categories, we would like the credit check to occur at both the Sales Order and Delivery creation events. In transaction OVA8, I have created records for the credit control area/risk category/credit group. The credit groups are assigned to the document types properly (01 - at Order, and 02 - at Delivery).
When I create an order which exceeds the credit limit, I release it from credit block in VKM1. I then proceed to create a delivery. At this point, I would like the delivery to block, but it is not doing so. On the Header--> Processing tab, the Credit Status is "D" (Released). This implies that just because the order was released, the delivery will not block.
A few questions....(a) does the "Number of days" in the risk category need to be set to zero? (b) does the delivery need to have value to block? Any additional thoughts you have would be greatly appreciated.
Thanks.

Dear dbrennan,
It is a standard functionality and for your questions
(a) does the "Number of days" in the risk category need to be set to zero?
SAP says
The current date is not greater than the Release date + the Number of days specified in the Rick category.
and System is not allowing negative ( -1) date too.
(b) does the delivery need to have value to block?
In practical, Is the sales order credit check and Delivery order credit parameters were different?
Regards,
Mani

Dynamic Credit check

Dear all,
Iam facing one issue , while saving the sales order, getting error as"Dynamic credit chek has been exceeded xxxx inr"
new customer created with out assign credit control area
credit customer master data has not maintained with limits.
at sales doc type as assigned the credit group.
my question is : how system has showing error based on which criteria, upto yet no transacitonal data for this cusomer.
plz sugest to raise the SO.
regards,
NAr

Hi,
Since you said, you don't have FD32 record for this customer, I would assume this is not due to your "Automatic credit control" settings which we do under OVA8.
Therefore you should be using "Simple credit check" facility in SAP.
Please check what is maintained under the transaction OVAK for your sales document type. If you have "A" or "B" or "C" under the column "Check Credit", then you're using simple credit check.
If you look at the SAP documentation given under that IMG node, you can clearly seebelow.
The SAP System checks the credit limit which was granted to the customer in this credit control area. The credit control areas and the credit limit of a customer are defined in financial accounting and entered in the customer master record. During the check, the SAP System totals the receivables, the open items from special G/L transactions and the net value of the sales order for every item of a sales document. The open items take into account obligations bound by contract which are not recorded for accounting purposes but which involve expenses through diverse business transactions. The total is compared with the credit limit. If the limit is exceeded, the system responds in the way defined by you in the configuration menu.
And also please check whether you have maintained a risk category and the credit limit in the Credit control area setting under the IMG path.
Enterprise Structure -> Definition -> Financial Accounting -> Define Credit control area
And also chcek below link on the credit management config
Cr[Credit management config|http://learnsaptips.blogspot.com/2011/08/credit-management-in-sap.html]
Best regards,
Rahal

Sales order- Warning msg Static credit check

Hi, SAP Guru,
When I create a order & saving it ...a POP UP comes with warning msg the static credit limit exceeds..... Can any one please let me know the how I can remove the warning POP UP . As client do not want any pop up should come while saving the order.
Please help.
Thx & regards

Hi,
If you remove the entry from the field "Check credit" in "OVAK" T.Code,the credit check will not happen for this order type.Which we don't want.
We need that the credit check should happen but the pop-up is to be removed.right?
For this goto the T.Code "OVA8".
Select your valid entry.Details.
Remove the value as "blank" for the field "Reaction".Press F4 for more options.
Beside this there is one more field "status/block" which is ticked means the order will be blocked for further transactions.And also status will be updated accordingly.
These blocked order have to be released either by using the T.Code "VKM3/VKM1".
Regards,
Krishna.

Credit Check while creation of Sales Order for Item Category Purchase Req

Hi Experts,
We are creating Sales Order using an Order Type ABCD for a material 1000. While creating Sales Order, we use Item categories (ZOVD, ZOVB,ZOST,ZOVP and ZOBO).
Credit Check settings are there at Order Type ABCD as well as all the Item Categories (ZOVD, ZOVB,ZOST,ZOVP and ZOBO). We are trying to test a scenario where a customer does not have enough credit limit while creating a sales order.
When we create a sales order for Item Categories (ZOVD, ZOVB,ZOST,ZOVP), credit check fails because our customer does not have enough credit limit, so that Sales Order gets created and Delivery does not get created (This is what we want), then we go into VKM1 manually and relase the sales order and then if we go to VA02 and check the status of the Sales Order, it says sales order status is complete. My Sales Team is saying here also Purchase Requisition is getting created.
When we create a sales order for Item category ZOBO, it is going into Purchase Requisition screen. Once we give another plant in the create purchase requisition screen and save it we are getting a message that cannot create Purchase Requisiton because of Credit Block.
The settings were same for all the Item categories.
1) What made difference to complete Purchase Requisition for Item Categories (ZOVD, ZOVB,ZOST,ZOVP) and not for Item Category ZOBO when my customer is not having enough credit Limit.
2) Why Purchase Requisition screen is not coming for us when we create an Sales Order for Item Categories (ZOVD, ZOVB,ZOST,ZOVP). We only get Create Purchase Requisiton Screen for Item Category ZOBO.
Thanks
Rajanikanth

Hi,
None of the Item Categories has Create PO Automatically.
Thanks
Rajanikanth

Credit check not reflecting in sales order level

Hi,Experts,
I have configured a dynamic credit check,but even if the credit limit for the customer is crossed,still it is not reflecting in the sales document level,and allows me to create the sales order.please guide me as where should I check the error in the system,
Thanks in advance,
A.Chakraborty

yes it is active for order type,and active for item category,as well as the dynamic credit check setting that is the combination of
risk categoryccaccgrp(for sales order) ,is also done,still when the sales order is created,and even though the credit limit has crossed it is not throwing any message ,which is supposed to appear in the sales order,when we are going to save...
please revert bach to me,to guide me about any further areas i need to explore within the particular area so far as the setting is concerned.
Many thanks,
Anshuman

Type of credit check

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