Credit Management Configuration:

Define Credit Control Area

SPRO-> Enterprise Structure -> Definition -> Financial Accounting -> Define Credit Control Area

Assign company code to credit control area

SPRO-> Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company Code to Credit
Control Area
Assign Sales area to credit control area

SPRO-> Financial Supply Chain Management -> Assignment -> Credit Management -> Integration with
Account Receivables Accounting and Sales and Distribution -> Integration with Sales and Distribution ->
Assign Sales Area to Credit Control Area
BAdI: Activation of SAP Credit Management:

SPRO-> Financial Supply Chain Management Credit Management Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution BAdI:
Activation of SAP Credit Management

Assign Credit Control Area and Credit Segment

SPRO-> Financial Supply Chain Management Credit Management Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution
Integration with Sales and Distribution

Determine Active Receivables Per Item Category

SPRO-> Financial Supply Chain Management Credit Management  Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution Define
Accounts Receivables per Item category

Define Credit Groups

SPRO-> Financial Supply Chain Management Credit Management Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution Define
Credit Groups

Assign Sales Documents and Delivery Documents

SPRO-> Financial Supply Chain Management Credit Management Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution Assign
Sales Documents and Delivery Documents

Define Risk Categories

SPRO-> Financial Supply Chain Management Credit Management Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution Define
Risk Categories

Define Automatic Credit Control

SPRO-> Financial Supply Chain Management Credit Management Integration with Accounts
Receivable Accounting and Sales and Distribution Integration with Sales and Distribution Define
Risk Categories

The automatic credit control gets activated by checking the box “SAP credit management”.
Credit Management – Configuration

SPRO-> Sales and Distribution -> Sales ->Sales Documents -> Sales Documents Header -> Define Sales
Document Types
SPRO-> Sales and Distribution -> Sales ->Sales Documents -> Sales Documents Item -> Define Item
Categories

SPRO-> Financial Supply Chain Management -> Assignment -> Credit Management -> Integration with
Account Receivables Accounting and Sales and Distribution -> Integration with Sales and Distribution ->
Define Automatic Credit Control
The three different update groups and their functions:

Update group 000012

• Sales order: Increases the open order value from delivery relevant schedule lines

• Delivery: Reduces the open order value from delivery relevant schedule lines and
increases the open delivery value.

• Billing: Reduces the open delivery value and increases the open billing document value.

Update group 0000015

• Delivery: Increases the open delivery value and increases the open billing document
value.

Update group 000018

• Sales order: Increases the open delivery value.

• Billing Document: Reduces the open delivery value and increases the open billing
document value.

Configuration in Business Partner:

BP – Credit management setup