SAP Tutorial - Credit Management - Part 2

Difference Between Simple and Automatic Credit Check Types

Explain in detail difference between simple and automatic credit check types. In automatic check, difference between static and dynamic checks.

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.

Eg: Customer Credit Limit is Rs.1,00,000/-
Suppose Doc.Value + Open Item Value is Rs.1,10,000/-

Here credit limit exceeds then system reacts.

Options : A) Warning Message
B) Error Message (Sales Order won't be saved)
C) Error Message with Delivery Block

AUTOMATIC CREDIT CHECK : Give extra credit facilities to the particular customer.

STATIC CREDIT LIMIT DETERMINATION :Checking Group + Risk Category + Credit Control Area.

A) Credit Checking Groups : Types of Checking Groups.

01) Sales
02) Deliveries
03) Goods Issue
At all the above 3 levels orders can be blocked.

B) Risk Category : Based on the risk categories company decide how much credit has to give to the customer.

HIGH RISK (0001) : LOW CREDIT
LOW RISK (0002) : MORE CREDIT
MEDIUM RISK(0003) : Average Credit

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 delivered

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 transferred 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

Then assign the Sales Doc & Del Documents.

Sales Doc. Type(OR) + credit Check(0) + Credit Group (01)

Credit Limit Check for Delivery Type : Del. Type (LF) + Del Credit
Group (02) + Goods Issue Credit Group (03)