Setting the Total Credit Limit and the Maximum Individual Credit Limit per Control Area
If you wish to set a total credit limit and a maximum individual credit limit, proceed as follows from the Accounts Receivable menu:
On the following screens, the system displays the overview data, the customer address and the central data. Choose Goto ® Central data.
Enter the limits in the section of the screen entitled Fixed limits for credit management.
Here you enter the maximum total of credit permissible for this customer across all credit control areas.
Maximum Individual limit
Enter in this field the maximum amount of credit permissible for the customer within each credit control areas.
Enter the currency for the total limit and maximum individual limit.
The fields in the section entitled Current assigned credit limits show to what extent (as a percentage) the customer has exhausted the amount of credit granted to him and in which control area the maximum individual credit limit has been exhausted the most.
The Last inquiry field displays when the last information on the customer was obtained. This field is filled manually.
On the next screen, you can assign the customer a certain individual credit limit (which does not exceed the maximum individual limit that has been predefined for the customer) in that credit control area. To do this, enter the individual credit limit in the appropriate field.
The following figure illustrates the relationship between
Assigning an Individual Credit Limit
You can also branch directly from the Accounts Receivable menu to the screen for assigning individual credit limits, by choosing Master record® Credit management ® Maintain and selecting the Status field.
When you choose ENTER you reach the screen where you can assign the customer a certain individual credit limit (which does not exceed the maximum individual limit that has been predefined for the customer) in that credit control area. To do so, enter the credit limit in the appropriate field.
Assigning a Risk Category
In order to classify customers according to business risk and then be able to evaluate this risk, you can allocate a risk category to a customer. This risk category determines which checks the system should carry out when processing orders.
To enter a risk category, go to the Change Customer Credit Management: status screen and enter a value in the Risk category field. Use F4 to display the list of possible entries.
Assigning a Customer Group
You can group customers together into customer groups on the basis of whatever criteria you choose (for example industry or country). You can use this customer group as a basis for processing or evaluating the accounts within it.
Assigning a Credit Representative Group
You can assign the employees in the credit management department to a credit representative group. The credit representative group is transferred into the order and can be used as a selection criterion for evaluations and release functions.
At credit control area level, you can enter memos for each customer. You define this memo as a certain text type (for example, internal information). Your system configuration determines which text types are relevant. For each text type, you can create a new text in another language.
Central texts for a customer are entered in the customer master record in the general data area.
To store a text for a customer at credit control area level, choose Extras® Texts from the screen Change Customer Credit Management: Status. A dialog box appears in which you can enter the control area texts.
If texts for this customer exist, the Text exists field is marked.
For a detailed description of the procedure, see "Customer Master Data".
Storing Documents for the Customer
If you are using SAPís ArchiveLink, you can store documents for each customer. This enables you, for example, to scan annual reports into the system, assign them to a customer and display them using the master record display function.
The system creates documents for a customer in the general data area of the customer master record.
To display a document for a customer at the credit control area level, or assign a new document, choose Extras® Documents from the Change Customer Credit Management: status screen. The system displays a dialog box in which the connected documents are displayed. You can also assign a new document to the customer here.
For a more detailed description on this procedure, see Allocating Documents in the Customer Master Data section of the Accounts Receivable and Accounts Payable documentation.
Setting Credit Limits Using a Referenced Account
It is possible to assign a credit limit not merely to an individual customer but also to a group of customers. This can be useful for a company with several branches, for example.
In this case, you predefine the credit limit for just one customer of this group (for example, the head office). This customer account becomes the credit account.
To assign a credit account to a branch account, choose Edit® Change credit account from the Change Customer Credit Management: Status screen. In the dialog box that appears, you can enter the credit account, that is the account number of the customer you are using to set the credit limit for the entire group.
After you choose ENTER, the credit limit of the branch is displayed as 0.00. The field Credit account displays the account number of the customer which contains the reference credit limit.
You can only specify a credit account within a credit control area.
The accumulating total of receivables is recorded both with the reference customer and the "dependent" customer. However, the system checks only against the reference customer as to whether the credit limit has been exceeded.
You can display which customers refer to the credit account. To do this, choose the following menu path in the credit account master data: Edit ® Cust. for credit acct..
Deleting Credit Limits
Both the central data and the control area data can be deleted at any time. Choose Credit management® Delete ® Central data or Credit management ® Delete ® Control area data.