SD Sales Information System

Configuration For Credit Management

Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between. 

An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer. 

For example, if your credit management is centralized, you can define one credit control area for all of your company codes. 

If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes. 

Credit limits and credit exposure are managed at both credit control area and customer level. You set up credit control areas and other data related to credit management in Customizing for Financial Accounting. The implementation guide is under Enterprise Structure -> Definition or Assignment -> Financial Accounting and then Maintain credit control area. You assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record. 

Tips 

Settings for determining the credit control area of a document. The settings of items 1 - 4 are taken into account according to their priority. The credit control area found is stored in field VBAK-KKBER. 

1. Transaction OB38

Check which credit control area is assigned to the company code. 

Company code: 

Credit control area: 

2. Transaction OVFL 

Check which credit control area is assigned to the sales area. 

Sales area: 

Credit control area: 

3. Transaction XD02 or VD02

Check which credit control area is assigned to the payer. 

Payer: 

Credit control area: 

4. Transaction SE37 

Is user exit EXIT_SAPV45K_001 being used? 

5. Transaction OBZK

For the settings under items 2 - 4, field "All company codes" must be marked in Transaction 

OB45, or the credit control area must be entered under the relevant company code in table 

T001CM of the credit control areas allowed. 

Company code: 

Credit control areas allowed: 

6. Settings for the credit checks 

7. Transaction OVAK

Which settings do exist for the sales document type used? 

Sales document: 

Check credit: 

Credit group: 

8. Transaction OVAD 

Which settings do exist for the delivery type used? 

Delivery type: 

Credit group for delivery: 

Credit group for goods issue: 

9. Transaction OB01 

Credit management/Change risk category 

Definition of the risk category for each credit control area. This risk category can be 

assigned to a credit account by using Transaction FD32. 

10. Transaction OVA8 

Here, the individual credit checks for key fields 

o credit control area 

o risk category 

o credit group are set. Take these key fields from the above settings and go to the detail 

screen. In particular, check whether fields "Reaction" and "Status/block" are set 

correctly. To carry out follow-up actions in case of a credit block, the credit check 

status must be set (field "Status/block"). 

11. Transaction FD32 

Credit master data for the payer of the relevant document. 

Credit account: 

Credit limit: 

Risk category: 

Currency: 

12. Settings for updating the credit values Update of the credit values is required for the limit 

check (static or dynamic credit limit check). 

13. Transaction OVA7

Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to 

field "Active receivable" in Transaction VOV7. 

Item type: 

Active receivable: 

14. Transaction V/08, Pricing 

In the pricing procedure used for pricing, subtotal "A" must be entered in a line for 

determining the credit value (mark the pricing procedure and doubleclick on "Control"). 

Usually, the net value plus taxes is used. This way the system is determined to use this 

subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for 

update and credit check. 

You can find the used pricing procedure of the order under "Item -> Condition -> Analysis". 

Pricing procedure: 

Line with subtotal = 'A': 

15. Transaction OB45 

Which update group (field "Update") do you use in the relevant credit control area? The 

default setting is "12". If you use another update group, check whether this is fine with 

you. If you open an OSS message, please tell us the alternative update group. 

Credit control area: 

Update: 

16. Transaction OMO1

Which kind of update did you choose for structure S066? 

In any case, "Synchronous update (1)" has to be chosen as the kind of update. 

All other settings will lead to errors.

Order to Cash Cycle

A customer orders some items from your company by creating a sales order (Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. You will post goods issue using VL02N but the material document created will be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items. (Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc). This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your AR account in FI.

You will have to remember that these are not a required sequence. Some times, you may configure your system to create a SD invoice as soon as you create a sales order or you may not create a shipping document at all. This is the position where Functional Consultant would come into picture and study the company's order to cash process and configure the SAP system to do so.