S/4 HANA PROJECT (FASTTRACK) – CREDIT CONTROL PARAMETERS

Consultant: César Silva (FI)

Date: September 2019

Version: 2020

SAP HELP FOR EACH PARAMETER

FIELD DESCRIPTION (SAP) - POSSIBILITIES

Credit update for open order/delivery/billing document value

The credit update controls when the values of open sales orders, deliveries, and billing documents are
updated.

Note
The open order value is only updated for schedule lines that are relevant for delivery.

Use
You can specify the following update groups for updating credit-related statistics:
000
Update group 000012
Order - Increases open order value from delivery-relevant schedule lines

Delivery - Reduces open order value from delivery-relevant schedule lines

Increases open delivery value

Billing document
Reduces open delivery value
Increases open billing document value of FI document
Reduces open billing document value
Increases open items
 Update group 000015
Delivery
Increases open delivery value
Billing document
Reduces open delivery value
Increases open billing document value of FI document
Reduces open billing document value
Increases open items

Update group 000018

Order
Increases open delivery value
Billing document
Reduces open delivery value
Increases open billing document value of FI document
Reduces open billing document value
Increases open items

Note
If a document cannot be processed with the update group you specify, the system determines the next
possible update it can carry out. For example, you select update group 000012 which, at delivery,
reduces the open order value and increases the open delivery value. Assume that one item in the order
is not relevant for delivery. In this case, the system automatically determines update group 000018 for
this item. Update group 000018 increases the open delivery value for the order item. The system uses
the confirmed quantity of delivery-relevant schedule lines to update the order value.

Number of the routine used for copying

Definition
Number of a subroutine (= form routine), that checks a requirement at a specific time.

Use
Here you can specify a routine number that contains conditions for when a credit limit check should
take place.

001 Examples
The routine could contain the following conditions:

No check, if the document does not contain any items

No check, if the new net value does not exceed the old net value
Caution
Take into account the importing and exporting parameters in the example routines delivered with the
standard system. Ensure that the coding in the routine is consistent with the coding for risk
management.

Credit check: Deviation of document value by x %

Specifies a deviation factor for documents that have already been approved for credit.

Example
You set the deviation factor at 10%. An order for 10 boxes of a material (price = 100 USD per box) has
002 a total value of 1,000 USD and is approved for credit. The customer then calls and wants to add
additional boxes to the order. If this causes the deviation factor to exceed 10%, the system carries out
another credit check.

Procedure
Enter a percentage.

Credit check: Number of days without check

003
Specifies the number of days after which a changed document must be re-checked for credit.
 Use
This function is used for checking documents that have already been released by a credit
representative, but that have subsequently been changed. The system does NOT carry out another
credit check if the following conditions are met:

The value of the changed order is not greater than the value already approved for credit (inclusive of
the deviation factor), AND
The current date is not greater than the original release date plus the number of days specified here.

Seasonal factor in %
Specifies a percentage tolerance limit up to which a customer's credit limit may be temporarily
extended or reduced.

Example
004
If you enter 5% in this field and select the <Minus field, a customer's usual credit limit of 10,000 USD is
extended by a further 500 USD.

Procedure
Enter a percentage. Remove the seasonal factor if it no longer applies.

Credit check: Static check

Indicates whether the system carries out a static credit check.

Use
The customer's credit exposure may not exceed the established credit limit. The credit exposure is the
total combined value of the following:

Open sales documents

Open delivery documents
Open billing documents
Open items (accounts receivable)
005 You can specify in the adjacent fields whether the system takes into account all open orders and all
open deliveries.

Note
The open order value is the value of the order items which have not yet been delivered.
The open delivery value is the value of the delivery items which have yet been invoiced.
The open invoice value is the value of the billing document items which have not yet been forwarded to
accounting.
The open items represent documents that have been forwarded to accounting but are not yet settled
by the customer.

Can be added →

Credit check: dynamic check

Indicates that the system carries out a dynamic credit limit check within a specified credit horizon.

Use
The customer's credit exposure is split into a static part - open items, open billing, and delivery values -
and a dynamic part, the open order value. The open order value includes all not yet or only partially
006 delivered orders. The value is calculated based on the shipping date and the credit horizon you specify
in the adjacent field. For the purposes of evaluating credit, you want the system to ignore all open
orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the
check may not exceed the credit limit.

Can be added → (Month, Days, Week)

 Credit check against maximum document value
Indicates that the system carries out a credit check based on a maximum document value.

Use
The sales order or delivery value may not exceed the maximum value that you specify in the adjacent
007 field. The value is stored in the currency of the credit control area. This type of credit check makes
sense, for example, if you process orders for new customers whose credit limits have not yet been
defined. The check can be initiated by a risk category which is defined specifically for new customers.

Can be added →

Credit check against critical fields (fixed value dates)

The indicator controls the critical field check. If the field is selected, the system checks whether critical
fields have been changed.

Use
If a check is carried out, the following fields are relevant:
008
Payment terms
Additional value days
Fixed value date

Note
Use this type of check for sales documents only.

Credit check against next customer review date

Indicates whether the system carries out a credit check based on the date of the next credit review.

Use
The next credit review date is stored in the credit data in the customer master record.

009 When you process a document, the next credit review date must not be beyond the current date.

Note
You can define a time buffer for this type of credit check. In the adjacent field, you can specify the
number of days that are added to the next credit review date.

Can be added →

Credit check against overdue open items

Specifies whether the system carries out a credit check based on open items.

Use
This type of credit check works in conjunction with two values that you specify in the adjacent fields:

010 Maximum % of overdue items in open items

Number of days which the open items are overdue
The proportion of overdue open items (that exceed the specified number of days) in the total of open
items should not exceed the percentage specified.

Can be added →

Credit check against oldest open item

011 Indicates whether the system carries out a credit check based on the age of the oldest open item.

Use
 The oldest open item must not be older than the number of days specified.

Can be added →

Credit check against highest dunning level allowed

Indicates whether the system carries out a credit check based on the highest dunning level.

Use
With this type of credit check, you specify the highest dunning level you want to allow in the adjacent
012 field. The dunning level is tracked and stored in the credit data in the customer master record. If this
level is exceeded during order or delivery processing, the system carries out a credit check.

REACTIONS

CODE ACTION
No message
A Warning
B Error message
C Like A + value by which the credit limit has been exceeded
D Like B + value by which the credit limit has been exceeded