Credit Management, Receivable Risk Management, Blocks and Calendars Flashcards
Credit Management
Customers have a time frame in which to pay their accounts with the company. These time periods are defined in the payment terms that are assigned to customer master record.
Customer credit limit
Form of credit management master data, may be configured as the permitted limit of the value of open items (invoices not yet paid plus the value of open sales orders plus the value of deliveries not yet invoiced)
Credit control area
an organizational unit in which customer credit limits are managed in SAP
Can assign one or more company codes to a credit control area
Risk category
Grouping category controls how the credit check is carried out when automatic credit control takes place
3 places where a credit check can occur
- sales order
- the delivery
- goods issue
Automatic credit management checks
- static check
- dynamic check
- check on the total document value
- critical field check
- next review date check
- check on open items
- check on oldest open item
- check on highest permitted dunning level
Simple Credit Check
Obsolete
Compares the payer’s customer master record credit limit to the net document value plus the value of all open items
Set at the document type level
Automatic Credit Management
Used to carry out different credit checks such as static and dynamic checks
Done by separating the sales document types, delivery document types, and goods issue into specific credit groups
Uses the customer’s credit risk category and assigns an outcome procedure to the combination of the credit group and the risk category along with the credit control area
Customer Credit Managment
Where the customer credit limit and the risk category assignment occurs
Customer credit master record divided into 5 views
- Overview
- Address view
- Central data view
- Status view
- Payment history view
Customer credit master record view: Overview
Gives an overview of the credit settings in relation to the customer including the credit limit, credit exposure, percentage of credit limit used, payment data, risk category
Customer credit master record view: Address view
Gives the customer address details as they appear on the customer master record
Customer credit master record view: Central Data view
Shows the total credit limit the customer may receive across all credit control areas, as well as the maximum limit he may receive in one credit control area
Customer credit master record view: Status view
Gives the customer actual independent details according to the particular credit control area being investigated.
Customer credit master record view: Payment history view
Displays the payments made by a customer for a particular credit control area with which a company code is assigned
Static credit limit check
a check comparing the credit limit assigned to the customer to the total value of open sales orders, plus the total value of deliveries not yet invoiced, plus the total value of open billing documents not yet passed on to accounting, plus the total value of billing documents passed on to accounting but that have not yet been paid by the customer
dynamic credit check
a check comparing the customer’s credit limit to the total of open sales orders not yet delivered, plus the total value of open deliveries not yet invoiced, plus the total value of open billing documents not yet passed to accounting, plus the total value of billing documents passed to accounting but not yet paid by the customer
Has an attached time period (credit horizon) says that the system is not to include sales orders in the totla of outstanding items that are due for delivery outside of the credit horizon
Additional credit checks: Credit check when the maximum document value is exceeded
Performed when a document value in the currency of the credit control area is exceeded–for example, company may wish all sales orders exceeding a value of 10k USD is to be automatically blocked and released by the credit manager
Additional credit checks: Credit check when changing critical fields
It is possible to institue a recheck of credit, should certain customer master record fields that are credit relevant be altered in the sales orders proposed from the master record–for example. the customer’s payment terms
Additional credit checks: Credit check at the time of the next internal check
Activates the credit check to be performed on all documents after the date of the next internal credit check. This date is defined in the credit management master data
Additional credit checks: Credit check on the basis of overdue open items
This credit check is based on the ratio of open items that are overdue by a certain number of days to the customer’s balance, which must not exceed a certain percentage
Additional credit checks: Credit check on the basis of oldest open items
This check allows the oldest open item to be only a certain number of days overdue
Additional credit checks: Credit check against the maxmimum allowed dunning levels
This check allows the dunning level of a customer to only reach a certain value
Additional credit checks: Customer specific credit checks
These credit checks are self-definable
Credit-relevant data
Updated into information structures S066 and S067 where it is accessed and updated
Each automatic credit control must be assigned an update group
000012, Sales Order, Delivery, Billing document, and fiancial account
000015, Delivery, financial accounting
000018, Sales order, billing document, financial accounting document
