Credit Limit and Payment Terms for customers

[Former Member]

Hello,

I have the following issue and I wonder if there's a way to solve it.

We are an FMGC company with different distribution channels such as KR,SS,FS,BI&WS.

We assign credit limit and payment term for each customer in our company. Once the limit is exceeded either for the amount or the term the system will automatically block any new sales order to that customer which's is correct.

For one channel which is KR, the common practice is to release all sales order even the credit limit and payment terms have been exceeded. This is waste of time as we have more than 300 sales order to KR on a daily basis and for each order sales should contract finance to release sales orders.

Is there any way that we can assign credit limit and PT for KR customers without activating the control function of blocking the system?

Can we make it on customer level? such as for KR top 15 customers?

Please advice.

[VeselinaPeykova]

Does the business need to record and report on the credit limit usage for KR?

What if a customer operates both as KR and non-KR, pays all non-KR orders on time, but has an overdue KR invoice for more than his limit for non-KR? Will you block a new non-KR order in this case? Do the same people in the company handle disputes for KR and non-KR customers?

[Former Member]

Hi,

In order to achieve your requirement, you need to create multiple Credit Control Areas. As you have multiple distribution channels, you can assign appropriate Credit Control Areas to those Sales Areas.

Say, we create two Credit Control Areas, A001 (for distribution channel KR) and A002 (for others).

Then, we can create a Risk Category (say "Low") and assign it customers in FD32 for Credit Control Area A001. Go to "Automatic Credit Control" and create a combination of this Risk Category "Low" and Credit Control Area A001 and maintain Reaction as "C" and untick Status/Block tick box. This will allow you to maintain credit limit for the customer, get a warning message but the documents will not get blocked. 

Regards,

Debarshi

[sez41]

Hi

Do you have only one credit control area? Credit control areas are assigned to sales areas, and you can differentiate a credit control area by your KR distribution channel. In this area you can set higher credit limits.

Or another possible solution, thought it may require coding, is simpler: You can activate some specific coding to bypass credit control functionality in KR distribution channel, or differentiate it on customer level on a VOFM routine -> Credit Management.