Credit ManageMent

Table of Contents
Define Credit Control area. ..................................................................................................................... 2
Assign Credit Control area to Company code. ........................................................................................ 2
Create Credit Segment: ........................................................................................................................... 3
Create Risk class: ..................................................................................................................................... 4
Integration with Accounts Receivable Accounting and Sales and Distribution: ..................................... 4
Deactivate SAP Credit Management: ...................................................................................................... 5
Define credit control area: ...................................................................................................................... 5
Define credit Segment: ........................................................................................................................... 6
Assign Credit Control Area and Credit Segment ..................................................................................... 6
Assign Sales Area to Credit Control Area: ............................................................................................... 6
Determine Active Receivables Per Item Category................................................................................... 6
Define Credit Group: ............................................................................................................................... 7
Assign Sales Documents and Delivery Documents ................................................................................. 7
Define Risk Categories: ........................................................................................................................... 7
Define Automatic Credit Control: (T-Code OVA8) ................................................................................... 8
BP Master data Maintenance: ................................................................................................................ 8
In credit segment Data we get below screen as: ................................................................................ 9
In General Data > Credit Profile Tab: ................................................................................................... 9
Sales order level check (VA01): ............................................................................................................. 10
Some Imp Points: .................................................................................................................................. 10
What is Credit Control Area: ............................................................................................................. 11
What is Credit segment:.................................................................................................................... 12
What is Risk Class: ............................................................................................................................. 12
What is Credit Group: ....................................................................................................................... 12

Created By: Aniket Talewar

Date: 19 May 2023
Define Credit Control area.

It is an organizational unit that represents the area where customer credit is awarded and
monitored.

This organizational unit can either be a single or several company codes, if credit control is
performed across several company codes. One credit control area contains credit control information
for each customer.

Path:

SPRO > Ref IMG > Enterprise structure > Definition > Define CCA

Assign Credit Control area to Company code.

SPRO > Ref IMG > Enterprise structure > Assignment > Financial Acc > Assign Company code to CCA.

Financial Supply Chain Management:

SPRO > Ref IMG > Financial Supply Chain Management > Credi management > Master data.

Created By: Aniket Talewar

Date: 19 May 2023
Create Credit Segment:
The credit segment is an organizational unit of SAP Credit Management whose attributes can be
freely defined.

We assign Credit segment to Credit control area.

Path:

SPRO > Ref IMG > Financial Supply Chain Management > Credi management > Master data > create
Credit segment.

Created By: Aniket Talewar

Date: 19 May 2023
Create Risk class:
It Specifies the Type of Risk of Business partner. Like low risk/ medium risk/ high risk/ very high
risk…etc.

Standard risk class is A, B,C,D,E is Standard as per below give description.

Integration with Accounts Receivable Accounting and Sales and

Distribution:

Path : Financial Supply Chain Management > Credit Management > Integration with Accounts
Receivable Accounting and Sales and Distribution > Integration with Sales and Distribution.

Created By: Aniket Talewar

Date: 19 May 2023
Deactivate SAP Credit Management:
This is the check whether to activate or deactivate Credit management for Specific client.

If we activate this, then the system will Deactivate Credit management for this client.

Define credit control area:

Path : Financial Supply Chain Management > Credit Management > Integration with Accounts
Receivable Accounting and Sales and Distribution > Integration with Sales and Distribution > Define
Credit Control Area.

Created By: Aniket Talewar

Date: 19 May 2023
Define credit Segment:

Assign Credit Control Area and Credit Segment

Assign Sales Area to Credit Control Area:

Determine Active Receivables Per Item Category

Created By: Aniket Talewar

Date: 19 May 2023
Define Credit Group:
At what level we want to perform Credit check we can decide on basis of Credit group.

The standard Credit group are as below:

Assign Sales Documents and Delivery Documents

Define Risk Categories:

Risk Categories should be same as risk class as above A,B,C,D,E.

Created By: Aniket Talewar

Date: 19 May 2023
Define Automatic Credit Control: (T-Code OVA8)

Same as above we have to maintain this for all Risk Category B, C, D,E.

BP Master data Maintenance:

In Configuration of business partner we have added satndard BP Role UKM000 to Our BP Role
grouping.

Then we will get below screen:

Created By: Aniket Talewar

Date: 19 May 2023
In credit segment Data we get below screen as:
Here select the credit segment in which we want to maintain the Credit data.

Maintain the limt and valid to date.

In General Data > Credit Profile Tab:

We have to maintain Rule and Risk Class for the business partner.

Created By: Aniket Talewar

Date: 19 May 2023
Sales order level check (VA01):
As we can see in above screenshot I have maintained Risk class to my business partner as “A”.

So as per out OVA8 data it will give me Error msg at order level if customer credit limit excceds.

OVA8 Data:

Sales order Error is: Credit Check SAP Credit Management Failed (Unable to Save)

If we change Risk class in business partner then system will behave like that.

For example: If I checked risk class as B and in OVA8 I maintained data as give “Warning only” then
system will only give warning if credit limit excceds in sales order creation.

Some Imp Points:

▪ If we want to block customer for credit check directly through BP then check below:

Created By: Aniket Talewar

Date: 19 May 2023
Give the Credit Block while creating sales order as below:

What is Credit Control Area:

An organizational unit that represents the area where customer credit is awarded and monitored.

Created By: Aniket Talewar

Date: 19 May 2023
This organizational unit can either be a single or several company codes, if credit control is
performed across several company codes. One credit control area contains credit control information
for each customer.

What is Credit segment:

The credit segment is an organizational unit of SAP Credit Management whose attributes can be
freely defined.

We assign Credit segment to Credit control area.

What is Risk Class:

It Specifies the Type of Risk of Business partner. Like low risk/ medium risk/ high risk/ very high
risk…etc.

Standard risk class for Credit management are as below:

As for understanding we can say that Risk class and Risk category are one and the same thing.

What is Credit Group:

At what level we want to perform Credit check we can decide on basis of Credit group.

Standard Credit groups are:

Created By: Aniket Talewar

Date: 19 May 2023
Note:

• The given contents are based on my understanding if you find any corrections needed then
please share it to me so that I can correct it and it will help to improve my knowledge.
• As Credit management is an Integration of SD-FI-CO. In this Document I have covered only SD
(Sales and Distribution) view.

Thank you…!!

Created By: Aniket Talewar

Date: 19 May 2023