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COMPANY CODE CUSTOMERS
TRANSACTION TYPE
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CREDIT CONTROL AREA
CREDIT CONTROL AREA
Credit control area: It is the responsible unit which takes care of the credit management activities for a Company.Defining Credit Control Area:
SPROEnterprise structure > Definition > Financial accounting > Define Credit Control Area
Note: 'Credit limit' if specified in the Credit control area by default applies for all the new customers.
Assigning Company Code to Credit Control Area:
SPROEnterprise structure > Assignment > Financial accounting > Assign Company code to Credit Control Area
Defining Risk Categories:
SPROFinancial accounting > Accounts receivable and accounts payable > Credit management > Credit control account > Define risk categories
Go to new entries and define the risk categories for the required credit control area.
Credit Groups:
Specifies which transactions can be blocked for processing if the credit limits are exceeded.Defining Credit Groups:
SPROSales and distribution > Basic functions > Credit management/Risk management > Credit management > Define credit groups
(01 – Credit group for sales order
02 – Credit group for Delivery
03 – Credit group for goods issue)
Assigning the Credit Groups to the Corresponding Document Type:
SPROSales and distribution > Basic functions > Credit management/Risk management > Credit management > Assign Sales documents and Delivery documents
Credit Limit Check for Order Types:
Select the required sales document type and assign credit group '01'Credit Limit Check for Delivery Types:
Select the required delivery type and assign credit group '02' and '03'Maintaining Credit Limit for Customers:
Logistics > Sales and distribution > Credit management > Master data > FD32 change(Note: FD31 create is not there because already by default every customer has credit limit)
Specify the customer for when credit limits are to be maintained and specify credit control area in which the customer exists and select all the views.
1. From the 'Overview Screen' select 'go to' -> Control area data -> Status
Credit limit: Specify the credit limit for the customer
Credit horizon date: If we specify a date here, only those outstanding sales values which fall within the specified horizon date are taken into account when calculating the credit limit used.
Risk category: Specify the risk category of the customer.
2. From the main menu select 'go to' -> 'control area
data' -> Payment history
In this screen payment history of the customer can be
seen.
(Note: For the system to maintain the payment history of a customer in his credit master data, we have to check the field payment history record in the corresponding 'Customer Master Data'.
1. From the main menu select 'go to' -> General data -> Control data
Total amount: The amount in this field specifies overall credit limit, customer may receive in all the credit control areas.
Individual limit: The amount in this field specifies the maximum credit limit the customer may receive within a credit control area.
Automatic Credit Control:
During sales document processing if the credit limits are exceeded, we can block the transactions. For this we have to customize automatic credit control.Defining Automatic Credit Control:
SPROSales and distribution > Basic functions > Credit management/Risk management > Credit management > Define Automatic control
Go to New entries and define the automatic credit control in the combination of credit control area, risk category and credit group.
Credit control area 1000
Risk category 001 High Risk Credit group 01 Order
002 Low risk Credit group 02 Delivery
003 Medium risk Credit group 03 Goods issue
Examples:
1000 001 01 - This automatic credit control blocks the
sales order for the customer with high risk category.
1000 002 03 - This automatic credit control blocks the
goods issue for the customers with low risk category.
1000 003 02 - This automatic credit control blocks the
delivery document for the customer with medium risk category.
Item Check:
If we check this field, the system checks for credit limits when we enter the items in sales document; otherwise, it carries out a credit limit check while saving the document.CHECKS:
Dynamic: If we go for dynamic check, for the purpose of evaluating credits the system ignores all those open orders that are due for delivery after the horizon date.Static: If we go for static check, the system considers all those open orders that are due for delivery even after the horizon date.
Document Value: If we go for this check, the system carries
out a credit limit check based on the value specified in the field maximum
document value.
(Note: This check is used generally for new customers
for whom credit limits have not yet been maintained.)
Reaction: Specifies how the system reacts during the sales document processing if the credit limits are exceeded.
Status/Blocks: If we check this field, the corresponding transaction will be blocked for processing.
- While creating a sales document, for the system to check the credit limits, in the definition of document type, in the field check credit limit, we should not specify the value \"no credit limit check\".
- To make an item relevant for credit management in the corresponding item category, we have to check the field \"credit active\".
