Page|a Credit Management Risk Management With the help of credit management the business keeps a check aver all thase customers ta ‘whom credit has been granted so as to recover the amount fram them which they owe to the business, ‘There are twotypes of Credit checks which can be configured into SAP and that are: 2) Simplecreditlimit check &, 2) Automatic credit limit check. Under Automaticcreditlimit check there are ancther two types andthat are: a} Static credit limit check & by Dynamic credit mit check. Static credit check is acually the credit che sales deliveries, open biling items and al th While configuring the credit management settifgs in SAP, we conficure the following under financial a/cina: ising ofall the open sales orders, open f open items Where as dynamic crecit cheek is the sum ‘check plusthettime horizon Je factors present inside the static credit, i) DefineCreait groups ii) Define Risk categories ili) Define Creditrepresertatvegroups iv) Define Credit representatves Formerly wedefineand assign a credit control preato our enter prisestructure Credit control area can be centralized or adecentraized. For one centralized credit control area, there wil be only one credit control area operatingunder the company cade but for the decentralized credit control area there will be many credit control araas under one company code. So exactly therelation between comaany codeand credit control area is many tomany Under the risk categories the customers are dividedin to: 3) High risk category 1 =30e=a, ‘Grsate PDE tes without this massage by purchasing rovePDF painter (hb:/\www.novand.2om)Page |2 b) Medium risk category & ©) Low risk category ‘And accordingly the credit representative graups are defined with respect to the no. of risk categories and thereby the representatives too with their contact details, After this there are the required settings which needs to be cone for our sales and distribution under its tab Le. to enter the settings like: Speci the subtotal as A (KONV-CM PRE) to gtoss value or the net valueper itemtotake the base amount of credit exposure of alineiter, Theoutput type for the credit managefiGhtis KAMLIand une the partner determination tthe credit representative (KB) and the credit o ager (KM) are the partners. Thecordion ears cet nace a In the condition records credit managemenBhas a carbon copy or a blind mail tothe recipientlbeing spectfed under the recpient colurm. Moreover has got the transmission options €'0) iat send before’ and ‘After sending move to outbox’ and finally ‘No forwarding’, with Pacirhaving their own individual influences on the type of communication with the recipient of the dunning notice or any other issue pertainingwith credit management. ‘The active receivables of sales document lineit can be configured with the respectivesettings mm for credit related management functions Under receivables risk management the paynjent guarantee forms, schemes are defined and assigned along with t's determination. Configuration for simple credit management lis very simple and we need to astign the relatad match cade against the required docurjent type for eg. A,B or C against dacument typeOR, Credit check can be cartied out at thr eeirmoortant levels: 1) Sales order level 2) Delivery document evel 3) PGlleval ‘The customer credit master is maintained under FD32, where we come across with the following tabsfor Overview, Address, Central data, Incividul limit, Status & payment history. 1 =30e=a, ‘Grsate PDE tes without this massage by purchasing rovePDF painter (hb:/\www.novand.2om)Page|3 Release the sales document at VKM4: All the sales document, VKM3: Sales document & ‘VMS: Delivery documents Which are been blocked due to credit chack. ‘Automatic credit check is carried cut at all of the above three levels of sales transaction where we need to define the credit group, assign the sales documents and delivery documents, crecit limit check for delivery types and ultimately needs to define the automatic credit control under OVA8, Incompleteness Procedure: Here the functionality deals with the below f certain fields that are validto process subsequent’documients. Define Status group for General, Deliver Picking) Putaway, Pack. ing document, Price, Goods movement, ‘Text Determination Procedure With the help of this functionality business fcan issue the sales notes, credit notes or packing information to the customer that cah be printed, Text can be determined for certain teat objects e.. customers, rrateria, conditions, customer material info record concitions, sales delivery, billing header & iterhs & sales activities. ‘Text determination works upon the condition technique ie. the condition tables-> Access SequenceCondition type Procedure. Only PRICA does not utilizes the condition technique concepti.e the Partner determination procedure, Route determination procedire, Incompleteness procedure or log, Crecit ‘management and the Availabilty check functionality. Define and assign text determination procedure settings are the first avallable settings Under the Customer Sales and distrioution in the selection screen of the text determination procedure. Moreover the rest of the configuration settings needs to be rade under the Sales header and text types. ‘Grsate PDE tes without this massage by purchasing rovePDF painter (hb:/\www.novand.2om)Page|é Wehavetofirst ofall: 1) Define a Text 1D, 2) Then needs to define atext determination Procedure 3) Assign thetext Id te that text determination Procedure 4) Assign thetext determination procedure to customer a/ egroups ‘Text D> Text Determination Procedure Customer A/ cGroup Under the sales document header functionality we will repeat all the above steps along with one vary important step of defining the actess Sequence and there ay assigringit to the text!D so theflow hereisas below: O Access Sequence> Text ID- Text Determing}ion Procedure-> Sales dacument header. ‘OUTPUT DETERMINATION PROCEDURE ‘The transactional data from sales, deliveri system to thenan SAP system by using verioul procedure defines what kind of output: ‘which partner function, ling document is transferred from SAP nsmiss on madia. Output determination which transmission media and to Wemaintain the output condition recordsunder the trx. codeWW11. Ifthe outputhas to be printedimmediately thep the device name would beL PO. ‘The|tem proposal functionality as well as the dssoriment module under the value contract, both acts as an order entry too ‘Thetrx code for contractsis VA¢1, wher eas for Scheduling agreements itis VA31. We have to maintain a separate pricing procedure (WKO0O1) & pricing procedure deter minalion with thecondition type WKOO for Value contract. ‘There willbe billingin both consignment issue and consignment return but there will be na billing undar consignment fill up and consignment pickup. ‘There are no schedule lines for contracts, hencedelivery document cannt be created with reference to contracts. To create delivery document with referenceto contract; sales order 1 =30e=a, ‘Grsate PDE tes without this massage by purchasing rovePDF painter (hb:/\www.novand.2om)Page|S is going to becreated as a“rdease order” & with reference to which delivery document is, ‘going tobe created. ‘Another document "WA" can also be usad as a releate order for value contract. In Service and maintenance contract along with rental contract, there Is no delivery. The processfiow is VA41-> VFOL. ‘Grsate PDE es wihout this massage by purchasig novaPDF painter (hi/iwww.navand som)