Hi friends ,
Here i am trying to explain the configuration steps for credit management and this article is for people who wants the basic and step by step configuration for credit management
In sap there is two different types of credit controls those are 1) Static 2) Dynamic
In Static check there is no Horizon period, and in dynamic you have horizon period.
Horizon period is the duration of the time. If you maintain horizon period as 2 months, then all the open documents that are with in this period are taken for credit check, documents beyond that are not for consideration. in static system will consider the all open document till now.
1) Define Risk Category:
SPRO -- > Financial Accounting -- > Account Receivable and Accounts Payable -- > Credit Management -- > Credit Control Account -- > Define Risk Categories
Go to “NEW ENTRIES” and create the Risk Category with the combination of Credit Control Area.
Save the record.
2) Define Credit Control Area:
It is the responsible organizational element which takes care of all the credit management activities in a company code.
SPRO --> Enterprise Structure -- > Definition -- > Financial Accounting -- > Define Credit Control Area.
Go to “NEW ENTRIES” and create the Credit Control Area.
Note: if you maintain risk category and credit limit in "default data for automatically creating new customers" , it will automatically apply for new creating customers in future.
3) Assign Company Code to Credit Control Area:
SPRO --> Enterprise Structure -- > Assignment -- > Financial Accounting -- > Assign Company Code to Credit Control Area.
Select the Company Code and assign the Credit Control Area to the Company Code.
Save the record.
4) Define Credit Groups:
The credit group specifies which subsequent transaction can be blocked for processing, if the credit limits are exceeded.
SPRO -- > Sales & Distribution -- > Basic Functions -- > Credit Management and Risk Management -- > Credit Management -- > Define Credit Groups.
You can use the default credit groups or create new once.
5) Assign Sales Document and Delivery Document to Credit Group:
SPRO -- > Sales & Distribution -- > Basic Functions -- > Credit Management and Risk Management -- > Credit Management -- > Assign Sales Document and Delivery Document -- > Credit Limit Check for Order Types.
Select the Sales Document Type and assigned to “Check Credit”, “Credit Group”. And save the record.
-- Credit Limit Check for Delivery Types.
-- Select Delivery Document Type and assigned to “Delivery Credit Group”, “Goods Issue Credit Group”
-- Save the record.
6) Maintain Credit Limits for Customer:
Logistics -- > Sales & Distribution -- > Credit Management -- > Master Data -- > FD32- Change.
-- Specify the Customer for whom the credit limits has to be maintained
-- Specify the credit control area of the customer.
-- Select all the views and enter.
a) In the overview screen , from the main menu select Go to -- > Control Area Data -- > Status.
Now you have to give value “Credit Limit”, “Risk Category”, Last/ Next Interval Review”
Note : for only Dynamic check maintain "Credit horizon date" field
b) From the main menu select Go to -- > Control Area Data -- > Payment History.
On this view the system display the payment history of the customer, provided we check the field “Payment History Recorded” in the corresponding customer master.
c) From the main menu select Go to -- > General Data -- > Central Data.
Here we have to specify the “Maximum Permitted Credit Limits” and Save the record.
7) Automatic Credit Control:
During the sales document processing, if the credits are exceeded, the system can automatically block the required transaction for this we need to configure automatic credit control.
SPRO -- > Sales & Distribution -- > Basic Functions -- > Credit Management and Risk Management -- > Credit Management -- > Define automatic credit control.
We need to define automatic credit control in the combinations of “Credit Control Area”, ”Risk Category” and “Credit Group”.
Note : 1) you can maintain seasonal discount by specifying "credit limit seasonal factor " tab.
2) in checks tab maintain you want to go for static or dynamic check.
3) specify the system reaction if credit limit is exceeded by "Reaction " check box
a) No massage
b) Warning massage
c) Error massage
4) you can block the order/deliver/pgi by specifying "Status/block" field
5) for dynamic control maintain "Horizon" value
6) for static select " open orders""open delivery`s"
Save the Automatic Credit Control Area.
Note: For the system to carry out the credit limit check during the sales document processing, the following settings must be done.
- 1) In the definition of corresponding sales document type, we must not specify the value “No Credit Limit Check” for the field “Check Credit Limit”.
- 2) In the definition of corresponding item category, we must check the field “Credit Active”.
Hope you like my explanation..