You can exclude the following postings from the credit limit check:

• Special G/L transactions
• Postings with an alternative reconciliation account

You can specify whether each special G/L transaction should be included in the credit limit check. In the standard system, down payments are included in this check, but not down payment requests.

When checking the credit limit, the system updates three comparison totals. These include:

• Open receivables
• Special G/L transactions (e.g. down payments and bills of exchange)
• Sales order values, value of goods to be delivered, and billing document value from SD

When the system checks as to whether the credit limit has been exceeded, down payments received are deducted from the receivables. If you do not want them to be deducted, you will need to change the system default values.

You do this in Customizing for Accounts Receivable and Accounts Payable by choosing Business Transactions → Down Payment Received → Define Reconciliation Accounts for Customer Down Payments

1. Carry out this activity.
2. Choose one of the entries under Sp.G/L.

The system displays the Chart of Accounts Entry dialog box.

3. Enter a chart of accounts.
4. Choose Goto → Properties.
5. Ensure that the field Rel.to credit limit is not selected.

By making use of an additional (alternative) reconciliation account, you can exclude certain postings from being subject to the credit management update. Proceed by first defining this account in Customizing for Accounts Receivable and Accounts Payable, and then setting the indicator Recon. acct ready for input in the G/L account master record.

This function is used in Japan, where various "safe" receivables often need to be excluded from the credit management update. "Safe" receivables include prepayments and accrued income, and payment by letters of credit.

For more information on this topic, see the Implementation Guide (IMG) for Accounts Receivable and Accounts Payable under Credit Management → Business Transaction: Credit Monitoring → Define Reconciliation Accts Without Credit Management Update.