Scribd
Upload
219 views3 pages

SAP Credit Management Tutorial: OVA8: Example-Consider A Company Creates A Credit Limit For Customer of 200,000

The document discusses credit management in SAP, which involves selling products to customers on credit and collecting payments later. It defines credit limit as the amount of credit a company extends to a customer. If a customer's orders exceed their credit limit, subsequent orders will be blocked by the system. The document then provides examples of credit limit checks, including simple checks of open items and sales orders, and automatic static and dynamic checks that evaluate transactions based on factors like a customer's credit rating and past unpaid bills. It concludes by outlining the steps to set up credit checks in SAP, including enabling credit checks for a customer and selecting what types of open transactions to include.

Uploaded by

Kiran Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
219 views3 pages

SAP Credit Management Tutorial: OVA8: Example-Consider A Company Creates A Credit Limit For Customer of 200,000

The document discusses credit management in SAP, which involves selling products to customers on credit and collecting payments later. It defines credit limit as the amount of credit a company extends to a customer. If a customer's orders exceed their credit limit, subsequent orders will be blocked by the system. The document then provides examples of credit limit checks, including simple checks of open items and sales orders, and automatic static and dynamic checks that evaluate transactions based on factors like a customer's credit rating and past unpaid bills. It concludes by outlining the steps to set up credit checks in SAP, including enabling credit checks for a customer and selecting what types of open transactions to include.

Uploaded by

Kiran Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

SAP Credit Management Tutorial: OVA8

Credit Management is a process in which Company sells a product / service to


customers on credit basis. The company collects payments from customer at a later
time, after sale of product. The amount of credit fixed by a company for a customer is
called credit limit. The customer can Purchase the product from a company within the
credit limit, and when the credit limit is crossed, order is blocked by the system.
Example- Consider a Company creates a credit limit for Customer of 200,000.
Customer can purchase the product from the company on credit till the credit limit
200,000 is reached. Customer gives an Order # 1 of amount 100000. Again Customer
gives an Order # 2 of the amount 1, 50000. Now, the total open order crosses credit
limit of a customer. Order 2 is   blocked by the system due to credit limit reached.

  Here customer ordered a total of Rs. 2,50,000, while a customer credit limit is Rs.
2,00,000.Here order 2 is over to the credit limit of a customer. So the order 2 will be
blocked by the system. Credit limit can be different for each customer.
Types of credit checks:

1. Simple credit check:  Simple Credit Check = Value of all Open Items + Value of
the Current Sales Order. Note: Open Items are invoices for which company has
not received payment.

 2. Automatic Credit check - Automatic credit check allows you to evaluate a


transaction based on the credit rating of the customer, and ensures appropriate further
processing of the transaction document. The credit limit check starts either
automatically when you save a document or by selecting Check Credit. Automatic credit
checks are of 2 types-

1. Static Credit Check (Check for  credit limit against total value of open sales order 
+ open delivery not invoiced + billing value of open billing document  not passed
at accounting).
2. Dynamic Credit Check (Check for credit limit against open sales order not yet
delivered + open delivery not invoiced + billing value of open billing document 
not passed at accounting + passed but not paid bill amount).

Step 1) Set Credit Check

1. Enter T-code OVA8 in command field.


2. Click on New Entries button.

 Step 2)

1. Enter Credit Control.


2. Check credit Check option.
3. Enter Credit limit validity period.
4. Check Static option.
5. Check open orders and deliveries.
Step 3)
Click on save Button.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy