Accounts Receivable and Credit Management Overview

This is an intermediate level exercise. Students should complete or review http://academic.uofs.edu/faculty/gramborw/sap/slsord.htm first.

ACCOUNT ANALYSIS EXERCISE

Display the account analysis screen for 34989

MENU PATH

Accounting > Financial accounting > Accounts receivable > Account > Analysis

Field name Input data
Customer 34989
Company code 3000
Fiscal year 2001

MENU PATH

environment> credit master sheet

Credit Master Sheet Screen

Field Name Input Data
Customer 34989
Credit Control Area 3000
Interval AG1D
Days in Arrears  X

Select the Execute Icon

What is the credit limit for this account in credit control area 3000?____________________ 

What is the credit limit for this account for all credit control areas?_____________________

What does the "Days in Arrears Analysis" tell you?

SETTING UP CREDIT LIMITS

MENU PATH

Accounting>Financial accounting> Accounts receivable> Credit management> Master Data> Change>

Customer Credit Management Initial Screen

Field Name Input Value
Customer 34XXX
Credit Control Area 3000
Check all boxes  

Select the Enter Icon

Customer Credit Management Overview Screen Central Data

Select Next Screen Icon twice

Field Name Input Value
Total Amount 5000
Individual Limit 5000
Currency USD

Select Next Screen Icon

Customer Credit Management Change Status Screen

Field Name Input Value
Credit Limit 4000
   
   

Select Save Icon

CHANGING CREDIT LIMITS

In this exercise you will change your customer's credit limit to a very low level.  You will activate automatic credit checking.  You will make a sale that will be over the credit available.  The sale will be blocked!  You will release the sales order and process it.

To change a customer's credit limits:  Remember there can be three credit limits:

MENU PATH

Accounting > Financial accounting > Accounts receivable > Credit management > Master records > Change

Field Name Input Data
Customer 34XXX
Credit control Area 3000
check all boxes

Select enter icon.


Select Next Page Icon Twice

 

Credit Control Management Change Central Data

Field Name Input Data
Total Amount Enter the appropriate amount
Individual Limit Enter the appropriate amount
Currency  USD

Select Next Page Icon 

Credit Control Management Change Status [This is the view of the CC Area 3000]

Field Name Input Data
Credit Limit Enter the appropriate amount, Note this must be less than the overall credit limit entered on the previous screen
Internal Data activates automatic credit checking  
Risk category 001
Credit Rep gp 001
customer credit group 1100

Select Save icon.

Display the credit limit data for your customer

Explain the difference between credit limit and overall credit limit

__________________________________________________________________

Credit Blocking and Release

Use the account 34XXX that you set up in a previous exercise. Make sure that the credit limit is set to below $2000 because we want to exceed it.

Sell a pump p-103 to this customer

The sales order should fail credit!

To release the sales order follow the menu path below.

MENU PATH

Accounting> Financial accounting> Accounts receivable>  Credit Management> Exceptions> Blocked SD documents

Enter the your credit account number.[34XXX]

Select the execute button.

Place an x in the box to the left of the line you want to release

MENU PATH

Edit> Release

Select the save icon.

Display the sales order you just released

Change the Delivery to Post Goods Issue

Send the Bill

Leave the Bill Unpaid