Credit Management, Receivable Risk Management, Blocks and Calendars

Question 1

Credit Management

Answer 1

Customers have a time frame in which to pay their accounts with the company. These time periods are defined in the payment terms that are assigned to customer master record.

Question 2

Customer credit limit

Answer 2

Form of credit management master data, may be configured as the permitted limit of the value of open items (invoices not yet paid plus the value of open sales orders plus the value of deliveries not yet invoiced)

Question 3

Credit control area

Answer 3

an organizational unit in which customer credit limits are managed in SAP

Can assign one or more company codes to a credit control area

Question 4

Risk category

Answer 4

Grouping category controls how the credit check is carried out when automatic credit control takes place

Question 5

3 places where a credit check can occur

Answer 5

• sales order
• the delivery
• goods issue

Question 6

Automatic credit management checks

Answer 6

• static check
• dynamic check
• check on the total document value
• critical field check
• next review date check
• check on open items
• check on oldest open item
  
  • check on highest permitted dunning level

Question 7

Simple Credit Check

Answer 7

Obsolete

Compares the payer’s customer master record credit limit to the net document value plus the value of all open items

Set at the document type level

Question 8

Automatic Credit Management

Answer 8

Used to carry out different credit checks such as static and dynamic checks

Done by separating the sales document types, delivery document types, and goods issue into specific credit groups

Uses the customer’s credit risk category and assigns an outcome procedure to the combination of the credit group and the risk category along with the credit control area

Question 9

Customer Credit Managment

Answer 9

Where the customer credit limit and the risk category assignment occurs

Customer credit master record divided into 5 views

• Overview
• Address view
• Central data view
• Status view
• Payment history view

Question 10

Customer credit master record view: Overview

Answer 10

Gives an overview of the credit settings in relation to the customer including the credit limit, credit exposure, percentage of credit limit used, payment data, risk category

Question 11

Customer credit master record view: Address view

Answer 11

Gives the customer address details as they appear on the customer master record

Question 12

Customer credit master record view: Central Data view

Answer 12

Shows the total credit limit the customer may receive across all credit control areas, as well as the maximum limit he may receive in one credit control area

Question 13

Customer credit master record view: Status view

Answer 13

Gives the customer actual independent details according to the particular credit control area being investigated.

Question 14

Customer credit master record view: Payment history view

Answer 14

Displays the payments made by a customer for a particular credit control area with which a company code is assigned

Question 15

Static credit limit check

Answer 15

a check comparing the credit limit assigned to the customer to the total value of open sales orders, plus the total value of deliveries not yet invoiced, plus the total value of open billing documents not yet passed on to accounting, plus the total value of billing documents passed on to accounting but that have not yet been paid by the customer

Question 16

dynamic credit check

Answer 16

a check comparing the customer’s credit limit to the total of open sales orders not yet delivered, plus the total value of open deliveries not yet invoiced, plus the total value of open billing documents not yet passed to accounting, plus the total value of billing documents passed to accounting but not yet paid by the customer

Has an attached time period (credit horizon) says that the system is not to include sales orders in the totla of outstanding items that are due for delivery outside of the credit horizon

Question 17

Additional credit checks: Credit check when the maximum document value is exceeded

Answer 17

Performed when a document value in the currency of the credit control area is exceeded–for example, company may wish all sales orders exceeding a value of 10k USD is to be automatically blocked and released by the credit manager

Question 18

Additional credit checks: Credit check when changing critical fields

Answer 18

It is possible to institue a recheck of credit, should certain customer master record fields that are credit relevant be altered in the sales orders proposed from the master record–for example. the customer’s payment terms

Question 19

Additional credit checks: Credit check at the time of the next internal check

Answer 19

Activates the credit check to be performed on all documents after the date of the next internal credit check. This date is defined in the credit management master data

Question 20

Additional credit checks: Credit check on the basis of overdue open items

Answer 20

This credit check is based on the ratio of open items that are overdue by a certain number of days to the customer’s balance, which must not exceed a certain percentage

Question 21

Additional credit checks: Credit check on the basis of oldest open items

Answer 21

This check allows the oldest open item to be only a certain number of days overdue

Question 22

Additional credit checks: Credit check against the maxmimum allowed dunning levels

Answer 22

This check allows the dunning level of a customer to only reach a certain value

Question 23

Additional credit checks: Customer specific credit checks

Answer 23

These credit checks are self-definable

Question 24

Credit-relevant data

Answer 24

Updated into information structures S066 and S067 where it is accessed and updated

Each automatic credit control must be assigned an update group

000012, Sales Order, Delivery, Billing document, and fiancial account

000015, Delivery, financial accounting

000018, Sales order, billing document, financial accounting document

Question 25

Credit Management Usage

Answer 25

*

Question 26

Credit management information system

Answer 26

A series of reports run from specific t-codes that provide user with a customer’s credit information

Question 27

Receivables Risk Management

Answer 27

Payment guarantees are a form of insuring against credit risks

Used as a guarantee against a value to be billed to a customer

They take the form of payment guarantee procedure i.e. documentary payment guarantees, payment cards, and export credit insurance

Question 28

Payment guarantee

Answer 28

Each has a key identifying it

Each has a payment guarantee category defining if it is a payment card or letter, etc. (payment cards do not have an assigned financial document category nor a financial document type)

Financial document category defines if the letter of guarantee is irrevocable or not

Payment guarantee procedure relies on the customer guarantee indicator, and the document guarantee indicator

Question 29

Payment guarantee procedure

Answer 29

6-character alphanumeric with a short description

Question 30

Order block

Answer 30

Sales order still created, this block stops sales order from creating a delivery via t-code VL01N, but will not stop a delivery being created vial the delivery due list VL01A

Question 31

Rquirements block

Answer 31

Order quantity is blocked from being confirmed. Therefore, system does not transfer requirements from sales document to the plant. This permits the quantities in the plant to be used for other sales documents.

Question 32

Delivery Due List block

Answer 32

This blocks the creation of

Question 33

Picking Block

Answer 33

This block does not permit the picking list to be created and picking to be carried out

Question 34

Goods issue block

Question 35

Factory Calendars

Answer 35

Used throughout the system

Use them to specify which days are work days at a location

May be used by the business to determine when a delivery must take place in order for it to reach the customer’s site on a day when people are at work and can receive the delivery

Used in consolidadted invoicing (one day might be work used, and in which case all billing created for that week is consolidated in one billing document)