Credit Management

Many company codes can be assigned to one credit control area. So that credit limit check can checked in all company codes assigned to customer Credit control area can be accessed in the following sequence o Company code o Credit control area assigned to sales area o Credit control area assigned to payer in billing document tab Credit can be verified only at 3 levels o Create sales order o Create delivery o Goods issue With simple credit check all good and bad customers can be treated in the same way Credit check type simple or automatic! can be assigned to document type "utomatic credit management is based on the combination of the risk category and the document credit group. Credit group and credit risk category defined finance settings "utomatic credit control settings

Static Credit Limit Check: #he customer$s credit e%posure may not e%ceed the established credit limit. #he credit e%posure is the total combined value of the following documents& 'pen orders 'pen deliveries 'pen billing documents 'pen items accounts receivable! #he open order value is the value of the order items which have not yet been delivered. #he open delivery value is the value of the delivery items which have not yet been invoiced. #he open invoice value is the value of the billing document items which have not yet been forwarded to accounting. #he open items represent documents that have been forwarded to accounting but not yet settled by the customer. Dynamic Credit Limit Check with Credit Horizon: #he customer$s credit e%posure is split into a static part( open items) open billing) and delivery values see above!) and a dynamic part) the open order value. #he open order value includes all undelivered or only partially delivered orders. #he value is calculated on the shipping date and stored in an information structure according to a time period that you specify days) weeks) or months!. When you define the credit check) you can then specify a particular hori*on date in the future for e%ample& +, days or - months) depending on the periods you specify!. .or the purposes of evaluating credit) you want the system to ignore all open orders that are due for delivery after the hori*on date. #he sum of the static and dynamic parts of the check may not e%ceed the credit limit. Horizon: /t0s a time period from today to 1ori*on with in which we can look for open items for comparing credit limit Open Orders: 'nly orders net value without deliveries created will be considered. Open Deliveries: 2eliveries which are not yet done goods issue considered into account Tables: S,334 #able for open sales order value S,354 #able for 'pen deliveries6billing documents #ransaction .233 4 Customer Credit Management 2isplay. #ransaction ..37 8 Customer Credit Master Sheet. #ransaction S9+3 8 on table S,33 8 'pen orders& credit management. #ransaction S"3: 8 ;eport C19C<=CM 8 "wesome report for Credit analysis. #ransaction S"3: 8 ;eport ;><;92:: 8 ;e4organi*ation Simulation after update errors. #ransaction S"3: 8 ;eport ;><;9255 8 ;e4organi*ation after update errors.