Assign company code to credit control area | Trans. OB38
Chapter 19 Credit Management Credit Management is the process .. relationships between Credit Control Area, Company Code, and. + Advanced SAP SD Interview Questions And Answers For Briefly explain the relationship between sales organizations and company codes. Many to A credit control area can include one or more company codes. One credit control area can include more company codes. Assignment > Financial Accounting > Assign company code to credit control area.
Assigning the Credit Control Area to a Company Code and Sales Area Once defined, the credit control area needs to be assigned to the required sales areas and company codes. Always remember that a credit control area can have multiple company codes, but a company code can be assigned to only one default credit control area. The assignment is very simple. The company code data is already populated on the customization screen. You just need to maintain the corresponding credit control area in the CCAr field for all the required company codes.
Assigning a company code to a credit control area NOTE: Remember that this is the default assignment for a credit control area for the respective company codes. For example, company codes and will always have a default credit control area of GMI. If you want to have the flexibility to overwrite the default credit control area during document postings, you need to select the Overwrite CC check box for the particular company code for which you want this flexibility.
As you can see, this assignment is also very simple. The sales area is automatically populated on the configuration screen. Use the Position button to position the cursor on the required sales area, and maintain the credit control area in the CCAr field for each required sales area. Credit Control Area Assi gnment Galaxy wanted to implement centralized credit management, and therefore both the company codes were assigned to the same credit control area, GMI.
Since the credit management is to be used to perform credit checks on sales transactions, all the U.
Therefore, the credit limits for GMI can only be maintained in USD, and the credit checks will also be performed in USD, irrespective of the currency of the company codes. For performing credit checks on sales transactions belonging to Galaxy Mexicothe SAP system will first internally convert the sales transaction value from Mexican currency into USD so as to calculate the credit exposure in USD and will then perform the credit check on the sales transaction.
Assigning a sales area to a credit control area Defining a Permitted Credit Control Area for a Company Code In SAP, a credit control area can have multiple company codes, but a company code can have only one default credit control area.
As usual, use the New Entries button to maintain the customization entry, and maintain all the alternatives that you want to permit for a company code.
Assign Company Code to Credit Control Area in SAP - SAP Training Tutorials
For your alternate credit control area to work, the default credit control area assignment in OB38 must have the Overwrite CC check box selected. This selection tells SAP that the default credit control area can be overwritten. Once both these settings are done, you can use your alternate credit control area in the transactions by manually replacing the default SAP-proposed credit control area with your permitted alternative credit control area.
If you want to default this alternative credit control area for a specific customer, you can assign this on the Billing tab of the sales area data of the customer master as a default credit control area for that customer. Defining Risk CategoriesRisk categories help you group the customers based on their credit ratings.
You can define separate controls for each risk category to monitor, evaluate, and control the credit situations and credit allocations. To define your own risk categories, you just need to click the New Entries button, maintain an up-to-three-character identifier for the risk category with a meaningful description, and then assign the identifier to the appropriate credit control area.
Defining risk categories Determi ning Credit Control Area A credit control area controls the credit operations. You assign a credit control area in customization to the company code and sales area.
The credit control area is also assigned to the customer credit master record. You could even set up your own determination rules for your credit control area, as we just discussed. When you create a sales document, SAP uses these assignments to determine the credit control area for the sales transaction.
For a sales transaction, a credit control area can be determined in the following sequence: Risk Categories Every organization has its own way to rate its credit customers. For Galaxy, we grouped customers into four risk categories: The Long Term Hold risk category was created to control credit allocations and credit checks for defaulters who have not paid off their long-outstanding receivables.
Defining Credit Groups A credit group represents the business transaction where the credit check can be applied. As you can see, the available credit groups cover all three vital steps in sales order processing.
Define relationship between controlling area and company code in SAP ?
Defining credit groups Assigning Credit Groups to Sales Documents and Delivery Documents In this step, you assign all the sales order and delivery document types that you would like to include in credit checks to their respective credit groups. After you follow the menu, you will see a Choose Activity dialog box providing two options: You can also reach this screen using transaction code OVAK. The assignment process is very simple. You just need to assign the sales document types to their respective credit groups.
Galaxy is using credit group 01 to perform credit checks on sales order type ZGM1. Another field visible here is the Check Credit field. This field controls whether the system runs credit checks during sales order processing and, if yes, whether it will be a simple credit check or an automatic credit check.
We will discuss the selection value for this field later in the chapter, along with how to set up simple and automatic credit checks. Defining credit groups Credit Limit Check For Delivery Types This activity allows you to set up the credit groups for delivery documents. You can also reach this screen using transaction code OVAD. Here again, you just need to assign the delivery document types to their respective credit groups.
Defining credit groups Determining Active Receivables per Item Category In this step, you set up the item category relevancy for credit checks. This setting helps calculate the net order value that is relevant for the credit check. To make the assignment, you need to select the check boxes for all the required item categories that you want to make eligible for credit checks.
Setting up item category relevancy for a credit check Always remember that credit checks in SAP are performed against a payer partner after accumulating all the necessary financial figures and all the open order, open delivery, and open billing documents. When you create an order document, all the credit relevant line items from the order are summed up to calculate the total sales order credit value. SAP then searches the credit existing exposure for the payer account from the sales order by looking into the credit master data record for the payer and add the credit value from the sales order to the existing credit exposure to calculate the total credit exposure value.
This total exposure value is then compared against the total credit limit available to the payer and accordingly SAP blocks or approves the credit check on the sales order and updates the credit status at the document header level.
Setting Up Credit Checks SAP provides two types of credit check, namely, a simple credit check and an automatic credit check: Simple credit check A simple credit check, as the name suggests, is very simple in nature.
Automatic credit check An automatic credit check is more robust than a simple credit check. Unlike a simple credit check, where you apply a standard rule across all the credit check—relevant documents, an automatic credit check allows you to pick and choose from a variety of credit check rules available in the standard SAP system to base your credit checks on.
You can specify when and when not to perform a credit check, can include seasonal factors, and can even define and use your own credit check rules. Customization screen for configuring a simple credit check To set up a simple credit check, you need to maintain values in the Check Credit field corresponding to each and every sales document type for which you want the simple credit check to happen. The Check Credit field specifies whether the system runs credit checks for sales documents and, if it does, what types of credit check the system would run and what impact it would have on the corresponding sales order document.
In SAP, each automatic credit check rule is defined for a unique combination of credit control area, risk category, and credit group. This provides you with the flexibility to assign different checks for different combinations, thus allowing new-customer sales order credit check rules to differ from a high-risk credit customer sales order.
Defining automatic credit control, overview screen As always, you can use the New Entries button to define your own automatic credit checks or you can use the Copy button to create one by copying from an existing one. The first section on the customization screen shows the key combination that controls the credit check, which we already discussed.
The Currency and Update settings are automatically proposed by the system from the credit control area customization from OB45 setup and cannot be changed.
Credit Control Area - SAP Documentation
Defining automatic credit control, detail screen The other sections of the screen are as follows: Document Controlling Here you set the overall document-level controlling for your credit check rule. There are two fields: No Credit Check Here you can set up your own requirement to not trigger credit checks on certain documents or in a certain situation.
A common use of this field is for manually released documents. In standard SAP, manually released documents are rechecked when there is a substantial change. If you would like to not check the manually released documents with a credit check again, you can create a requirement using ABAP help and can assign the requirement number in this field. Which kind of update did you choose for structure S? All other settings will lead to errors. Some materials have been blocked for procurement and production.
Is there a way to block such transactions for a material flagged for deletion? Sales Status field in the sales organization view of the material master may be used to block any transaction for the material.
How can we overwrite default types in SD? Exchange rate gets copied from the customer master record.
Exchange rate types are to be maintained for the customer in the sales screen of the customer master record. The PL00 condition is fine in delivery. But when we try to print to either the screen or printer, an error V occurs. Is it possible to create delivery without shipping points?
In all other scenarios you have to key in the shipping point. The above described scenario will only work if all items on the sales order are to be shipped from the same shipping point.Define Credit Control Area & Assign to Company Code
SAP allows a non-inventory item and an inventory item to be in the same document till delivery but splits at the time of creation of billing document. Can we combine a non-inventory item with an inventory item in one invoice?
Can we treat it as a value item in sales order so that it is priced and then make it as a text item in delivery documents so that it appears in the same invoice and does not split?
Make the non-stock material deliverable, but not pickable. Both items will carry into the delivery, and therefore appear on the same invoice. However note that for system to create combined invoices, PO number, payment terms, sales organization, and distribution channel must be identical. Else undesirable combinations may be created by the system.
Company Code and Controlling Area Relationship in SAP
It is impossible to price at the material level matnrwhen a material has a pricing reference mvke-pmatn set up against it in the master data. Pricing always look for the pref, even if a price is set up against the material and not the pref.
How can we price by material and pref? The field used to look up at the price is defined in Access sequence. If you insert a step with MATNR then the system will first look for the material, if not found use the exclusion tick box it will look for the pref. We generated a new condition table.