How does the credit update work

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Created by Former Member on Jan 10, 2015

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Symptom

You would like to know how credit update works.

Analysis

For the necessary customizing settings please read note 18613. Also you can use report CHECK_CM to check sales documents with regard to their credit management information in one step. You can read more about this HERE.

How the credit value is calculated, you can read HERE.

The open credit values are updated in the info structures S066 and S067 when you save the document. These are:

Open sales order credit value (S066-OEIKW)

Open delivery credit value (S067-OLIKW)

Open billing document credit value (S067-OFAKW)

With the update group (maintained in transaction OB45 for the relevant credit control area) you control at which point of time in the process flow the credit value should be updated.

There are 3 possible entries for that: 12, 15 and 18.

The default setting is '12' - Update with update group 12:

Update for sales orders:

The open sales order values are updated in the information structure S066. When the credit value is calculated, the open schedule line quantity (VBEPD-OLFMNG) is multiplied with the item credit price (VBAP-CMPRE). The open schedule line quantity is the confirmed quantity of the schedule line that is still open for delivery. The credit price is defined in accordance with the settings in the pricing for the item. The material availability date of the schedule line (VBEP-MBDAT) defines the period in which the open sales order value is updated. You use transaction OMO1 to define the period unit for the information structures. If an item has no confirmed quantity (VBEP-BMENG), the system does not update an open sales order value. This also occurs for documents that are blocked by the credit check. As a result of the credit block, the confirmed quantities are deleted so that an open sales order value can no longer be updated. When sales orders with a credit block are released (for example, using transaction VKM1), a new availability check is performed. If the availability check can confirm the quantities, an open sales order value is updated accordingly. Conclusion: Credit blocked documents do not increase the open credit values. There are exceptions to these rules: 1. Sales order items which are not relevant for delivery and do not have schedule lines relevant for delivery are not updated to S066 ('Open sales order credit value') rather to S067 ('Open delivery credit value'). You can find further information about this in Note 361637. 2. You can use requirements to delete confirmed quantities in credit blocked sales orders. These requirements are defined in transaction VOFM under the menu path 'Requirements -> Subsequent functions -> ...'. The system asks you for a credit status in the respective user requirement. If this is set to 'Blocked', the system cancels the confirmed quantity. You may want the system to behave differently. If this is the case, you can store a separate requirement which does not cancel the confirmed quantity. As a result, the sales order item has a confirmed quantity again and consequently, it updates the open sales order value although the document is credit blocked. For NON-MRP materials (materials without requirements planning), the system does not cancel the confirmed quantity despite a corresponding condition, as described in Note 393304. For further information about this, refer to Notes 674112 and 914627. 3. A delivery block in the sales order affects the update of open credit values. For more information, see Note 741980.

Update for deliveries:

The open delivery values are updated in S067. The update does not occur in time units. There is only one entry in S067 for each credit control area and credit customer. If you create a delivery with reference to a sales order, the system clears the open sales order value in accordance with the delivery quantity (from S066) and posts the open delivery value for the delivery (to S067). Deliveries with credit lock also write open values of goods to be delivered. Here, it is not possible that a credit-blocked document does not create an open credit value (as in the order). This is also correct from a business view, because the delivery already blocks the goods, and the value of the goods is therefore already consumed for the credit customer.

Update for billing documents:

The open billing document values are also updated in S067. Also in this case, only one entry exists for each credit control area and credit customer. If you create the billing document with reference to a preceding document, the system clears the open credit value in accordance with the invoiced quantity for the preceding document and posts the open billing document value for the billing document (to S067). If you transfer the billing document to accounting, the system clears the open billing document value (from S067). Now the value has been transferred to the open items and occurs as a receivable from the viewpoint of credit management. If the incoming payment occurs, the receivable is met and the consumption of the credit limit is reduced.

Update with update group 15:

Order: No posting is done to open order values. The order is placed after the delivery is created. Delivery: increases open delivery value (S067-OLIKW) Invoice: reduces open delivery value (S067-OLIKW) and increases open invoice value (S067-OFAKW) Accounting Document: reduces open invoice value (S067-OFAKW) and increases open items

This type of update group is used for orders without schedule lines – service items or orders with schedule lines that are not relevant for delivery.

Update with update group 18:

No posting to open order values, only open delivery values (table S067) are updated Sales order: increases open delivery value Invoice: reduces open delivery value and increases open invoice value Accounting Document: reduces open invoice value and increases open items (accounts receivable)

This update group will be always used by order items that are not relevant for delivery (for example, service items or value items) or for items that are billed as order-related (for example, for billing plans). In the following cases update group 18 is always set dynamically as opposed to the update group of the credit control area. This ensures that, in the case of these exceptions, the update occurs in the open delivery values (S067) and not in the open order values (S066). The update group is determined in the program LMCSBF10 in the form KREDIT_AKTIV:

1. Debit memo request: In the debit memo check, the items are not relevant for delivery and are billed as order-related. The customer has already received the goods to be billed - therefore, they have already been delivered. The order value is updated in the open delivery values.

2. Third-party order processing: You do not make a delivery to a third-party item yourself (item type TAS in the standard SAP system). The delivery is made by a third party. Therefore, you have no further influence on the delivery. The order value is also updated in the open delivery values.

3. Order items with billing plan: Billing according to the billing plan is order-related billing. The order values are also updated in the open delivery values.

4. Further examples are value items and service items for which there is no supply and which are also billed as order-related.

You can find further information about this in Note 361637.

If you change the update group in OB45, you need to rebuild the credit values. For that please read HERE.

Further information:

I would like to track the credit value updates GUIDE for inconsistencies

Credit Management Operations in SAP SD (SAP ERP)

by SAP PRESS on February 18, 2020

From a credit management point of view, important operations include releasing and rejecting blocked documents, credit review, and mass change of customer credit master records.

Let’s take a look at each.

Releasing Blocked Documents

When a sales document is blocked, a warning or error message appears, such as Maximum Percentage Open Items Exceeded. If you click on the question mark, you’ll find the details of the credit checks performed on the document, the ones it cleared (OK), and the ones it failed to clear (NOK). As shown in the figure below, the document was subjected to neither a static credit limit check nor any check for user exit 1, 2, or 3.

It cleared (OK) the check for dynamic credit limit, document value, critical fields, next check date, and maximum dunning level. It failed (NOK) the check for open items and oldest open item. You could still save the document can and have it reviewed by the credit representative by using Transaction VKM1 or following the menu path SAP Easy Access > Logistics > Sales and Distribution > Credit Management > Exceptions > Blocked SD Documents. All of the important information required for making the decision to either release or reject the document is available here.

By selecting a document, you can access the customer master record using the menu path Environment > Customer Master, or customer credit master record using the menu path Environment > Cust. Master Credit of the sold-to party for that document. You can see the other open sales using the menu path Environment > Open Sales Values > Open Sales Order, and deliveries or billing documents by using the menu path Environment > Open Sales Values > Open dlvs/Bill Docs.

You can also generate the credit master sheet found using Transaction S_ALR_87012218 or following the menu path Environment > Credit Master Sheet; this is a particularly useful report to review the credit status of an individual customer. The report gives more information than Transaction FDK43, but with Transaction VKM3, you can review several customers at once. Based on all of the available information, the credit representative may decide to release the document by selecting the checkbox on P.St. column, as seen below, and then click on the green flag icon to accept, or the Reject button to reject.

Credit Review of Individual Customer

Individual customers are reviewed internally at regular intervals to increase or decrease their credit limits and change their risk categories in the credit master record (Transaction FD32). For a credit review, the credit master sheet report is normally sufficient for individual customers.

To review a large number of customers, you can use the credit overview Transaction F.31 or the menu path SAP Easy Access > Logistics > Sales and Distribution > Credit Management > Credit Management Info System > Overview. The following data is normally useful during credit reviews:

Total sales

Days of sales outstanding (DSO)

Credit utilized

Payment history

Due days analysis

Credit Master Record Mass Change

Credit master data maintenance is the joint responsibility of the accounting and sales officials responsible for credit management. In some companies, master data maintenance is a separate function. When Next Review Date is used as a reason to block the orders in credit management, mass maintenance becomes important. It’s important to review customer credit ratings and update the customer credit master records before the expiration of the next review date.

The steps for a mass change of the customer credit master record Next Review Date field are as follows:

Using Transaction F.34, you can change the Next Review Date field of any number of customers in no time. In the initial screen, select the customers based on the restriction on the following fields of the customer credit master record:

Credit Account

Credit Control Area

Credit Representative Group

Risk Category

Last Internal Review

Next Internal Review

After entering the required values in the input screen, execute the process to go to the screen shown in the figure below.

Select all of the customers by pressing [F5] or clicking on the Select All icon.

Click on the New Values button.

Enter the new date for Next Internal Review in the pop-up window shown below, and click on Continue.

You’ll get the message “New values are held and can be saved.” Click on the Save icon.

For all successful changes, you’ll get the message “Control area data <credit control area> Changed,” and for failed changes the message will be “Account <customer credit account> is currently blocked by another user.”

Conclusion

In this blog post on SAP ERP Sales and Distribution, we explore some important credit management operations. One final note about mass changes of fields such as risk category (KNKK-CTLPC), customer credit group (KNKK-GRUPP), or individual limit (KNKA-KLIME), use Transaction MASS, object KNA1, and then table KNKK or KNKA. For mass changes of the Credit Limit (KNKK-KLIMK) field, you can use Transaction SE16N with the SAP edit (&SAP_EDIT) function.

Editor’s note: This post has been adapted from a section of the book Configuring Sales and Distribution in SAP ERP by Ricardo Lopez and Ashish Mohapatra.

Jyoti Prakash

March 22, 2012 3 minute read

Useful SAP Credit Management Programs

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In the present modern era of credit & economic crisis, credit management can play a vital role in day-to-day business. So, it is essential for the business to have right things right. Streamlining the credit will assist you in streamlining the business process. Also, Credit management gives you an opportunity to know your customer better in terms of financial facts & payment behavior.

So, you can’t achieve all success, if a proper mechanism is not in place. Like

kind of credit check you want

the events where you want these checks

change customer creditworthiness

reorganizing the credit data

the period for which you look the data so forth and so on.

Following are some Useful program in SAP Credit Management which can come handy.

This report would list out the error in central data or credit limit-related data.

This reorganizes the credit data after the change in organizational data for credit. These changes can be currency, credit value,

Program

When updating errors occur, it enables you to reorganize the open credit, delivery and billing document values.

The report checks all blocked documents from the credit view. This repeat credit checks for blocked SD documents, for example, after receipt of payment

You should run this report periodically, usually at the start of a period. The report checks all the sales documents, which reach the dynamic credit check horizon. The period for the ‘date of the next credit check’ is proposed from the current date, with the help of the period split for open sales order values.

We prefer this program over RVKRED06 & RVKRED08. As it contains more selection options. Here already released documents are checked, if the validity period for release is over.

This report would address the requirement for the overview of the customer master data for credit management for a customer. Check the range of further selection.

Thus, these programs can make life easier for the end-users.

Other TCodes related to Credit Management

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SD (Sales and Distribution)

SAP ERP

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credit

distribution

enterprise resource planning

erp

Related Questions

Credit Management

By Former MemberMay 28, 2009

find t code for program

By Antaa21 .Jan 17, 2012

custmization of Credit management processing in sap sd

By Former MemberMay 18, 2007

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19 Comments

Former Member

June 27, 2013 at 11:51 am

Thanks for additional information

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Former Member

June 27, 2013 at 4:39 pm

Dear j.p sir

very good document i am not enough to appreciate you sir

but it very helpful to learners like me ..thanks a lot for your sharing

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Former Member

June 28, 2013 at 2:51 am

Dear j.p sir

let me know RFDKLI42 -- IT shows which customers already got warning msg right ?

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Jyoti Prakash

Blog Post Author

June 28, 2013 at 6:43 am

Yes, report RFDKLI42 displays early warning list of critical customers due to credit check in SD. This early warning is based on A/R summary of the customer. Thanks for reading and comments. Best Wishes, JP

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Former Member

March 28, 2014 at 3:34 am

Dear J.P. sir

Thanks for sharing very useful document. You can add one more program in this list.

Program:RVKRED07 (For SD: Reorganization of credit values after update errors).

For support purpose, This is a very useful program.

Regards,

Haresh Panara

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Md. Enayet Hossain

July 6, 2013 at 5:27 am

Thank you.

Good job!

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Srinu S

October 20, 2013 at 6:26 pm

Hi JP,

Thanks for sharing useful document.

Srinu.

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Shiva Vasireddy

October 21, 2013 at 2:47 am

Hi,

Vey Useful Information and thank you

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Sambit Mishra

October 21, 2013 at 4:04 am

Absolutely wonderful, Indeed very much needed!!!

Thank you JP!!

Regards,

Sambit.

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Former Member

December 10, 2013 at 8:46 pm

Thank you. This information was very helpful.

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Former Member

March 26, 2014 at 8:20 am

Thanks for the useful info.

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Former Member

March 27, 2014 at 1:15 pm

useful posts!

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Former Member

June 19, 2015 at 5:03 am

Thanks for sharing useful information!

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Venkat Reddy

January 17, 2017 at 2:35 pm

Hello J.P Sir,

I am technical developer working on a requirement where business wants credit check to be done for a Nomination(O4NM). In Nomination line item we will have reference document where we have contract #. Your valid help based on the experience might help me.

Regards, Venkat

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Shiva Vasireddy

March 9, 2017 at 9:41 am

Hi,

Thankyou for the Information.

It could be better if you could Update T.codes associated with these Programmes

Eg. RFDKLI20 – Reset Credit Limit for Customers T.code(F.28)

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Jyoti Prakash

Blog Post Author

March 9, 2017 at 10:46 am

Thanks for the suggest. I will look for them and update. Best Wishes.

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Former Member

November 17, 2017 at 2:48 pm

Very Useful Information sir and thank you. Can you please share S/4 HANA Related credit management information. it will be more useful. Thanking you.

Regards, G.V.Shivakkumar

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Marcio Tadeu Leite

June 11, 2018 at 10:47 pm

Hi Mr. Jyoti Prakash,

Do you know any standard credit program that shows all documents (sales orders, deliveries and invoices) that is consuming the customer limit?

Regards, M.Leite

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Jyoti Prakash

Blog Post Author

June 12, 2018 at 8:32 am

You can refer program RFDKLI40

And also, check FD33 - Menu Bar -> Environment -> Sales and Distribution Documents

Thanks, JP

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Program	RFDKLI10 – Customers with Missing Credit Data
TCodes	S_ALR_87009992 S_ALR_87012214 S_ALR_87101108

Program	RFDKLI20 – Reset Credit Limit for Customer
TCodes	F.28 S_ALR_87009998 S_ALR_87012220

Program	RVKRED77 – Reorganize of credit data after update errors
TCodes

Program	RVKRED06 – Background jobs for checking blocked credit management
TCodes

Program	RVKRED08 – Credit check for sales orders that fall into the credit horizon
TCodes

Program	RVKRED09 – Check credit on SD documents in background
TCodes

Program	RFDKLI40 – Credit Overview for Customer
TCodes	F.31 S_ALR_87009995

TCodes	Description
S_ALR_87009999	Credit Limit Data Mass Change
S_ALR_87012221	Credit Limit Data Mass Change
S_ALR_87009994	Credit Limit Overview
S_ALR_87012216	Credit Limit Overview
F.33	Credit Management – Brief Overview
F.34	Credit Management – Mass Change
F.32	Credit Management – Missing Data
F.31	Credit Management – Overview
S_ALR_87009996	Credit Master Sheet
S_ALR_87012218	Credit Master Sheet
F.35	Credit Master Sheet
S_ALR_87009997	Credit Mgmt: Early Warning List
S_ALR_87012219	Credit Mgmt: Early Warning List
S_ALR_87012217	Credit Overview
S_ALR_87101147	Customers with Credit Balances
S_ALR_87009992	Customers With Missing Credit Data
S_ALR_87012214	Customers With Missing Credit Data
F.2D	Customrs: FI-SD mast.data comparison
S_ALR_87009993	Display Changes to Credit Management
S_ALR_87012215	Display Changes to Credit Management
S_ALR_87101108	Missing Credit Data
S_ALR_87012220	Reset Credit Limit for Customers