Define Credit Control area:

IMG à Enterprise structure à Definition à Financial accounting à Define Credit Control area.

Assign Credit control area to company code

IMG à Enterprise structure àAssignment à Financial accounting à Assign Company code to credit control area

Assign Company code to credit control area:

IMG à Enterprise structure àAssignment à Financial accounting à Assign Company code to credit control area

Define risk categories

Risk Category is a Place where we define the Customer Category. Risk Category control all credit check.

002 – High risk Category
003 – Medium Risk Category
004 – Low Risk Category

IMG à Financial Accounting (New)à Account Receivable and Accounts Payable à Credit Management à Credit control Account à Define Risk categories

Assign sales area to Credit control area:

IMG à Enterprise structure àAssignment àSales and Distribution à Assign Sales area to Credit Control area

Assign credit control to Customer master:

Here we assign the Credit Control Area in the Customer Master in Billing Tab.

Credit Group

The credit group groups together different business transactions which should be dealt with in the same manner with regard to the credit check.

You enter the credit groups when you configure the sales document types for credit management and define the automatic credit check.

IMG à Sales and Distribution à Basic functions à Credit Management/Risk Management à Credit Management à Define Credit Groups

Automatic Credit Control:
Here we define the automatic credit control. This matrix define the settings of the Credit check.

IMG à Sales And Distribution à  Basic Function à Credit Management / Rish Management à Credit Management à Define Automatic Credit Control.


Based on the Credit Control Area + Risk Category + Credit Group.

In the above screen you may see a column named as Update group. 

Update Groups

Basically it is a info structure where system stores all the data about credit limit. The credit relevant data is updated in a info structure, where it is accessed & updated. Thus each automatic credit control must be assigned an update group.

-          Update Group 000012

-          Update Group 000015: delivery & billing

-          Update Group 000018: sales order, delivery & billing.

Update group 000012, updates at:

-          Sales doc: increased order value

-          Delivery: decreased order value & increased delivery value

-          Billing: decreased delivery value & increased billing amount

-          Invoice: decreased billing amount & increased open item value.

Item check field

Indicates that the system carries out credit checks not only when you save the document but already when you enter single items or header data.


Reaction Filed:
Is the place where we maintain how the system should react like error , warning, message.



Maintain Credit limit for the Customer
Use transaction code FD32 to maintain credit limit for the customer.
In this t code we maintain the credit limit of the customer. Here we can also maintain other details like address , status which states that customers actual limit etc.
Payment history tab means the payment made by the customer.

Release Blocked Sales Order/ Deliveries:
-          VKM3: sales order
-          VKM5: delivery
-          VKM4:    both

One can see the offending document. Note on the right hand side, the 'Status Field'. This shows the check, the doc failed. If this field is empty, the doc did not fail a credit check, even though it may be in the list of SD documents that are "required to be released".

To release the doc, one indicates the doc to be released and then clicks on the 'Release Button'. The result is the offending doc entry, highlighted green. One then proceeds to save, after which you are informed the doc number has been released.

-          Net value with sub total 'A', in pricing proc, will be the basis for this.