S4 HANA sattlement management_Ganesh Tarlana Ganesh Tarlana
Settlement Management functionality supports all types of settlement processes, including core business processes that need to be fully integrated in the order-to-cash cycle or within in a procure-to-pay scenario, such as condition contract settlement (rebate settlement), as well as standalone processes, whereby you provide special financial settlement services for your business partners
Prepare for your interview with these top 20 SAP SD interview questions. For more IT Profiles, Sample Resumes, Practice exams, Interview Questions, Live Training and more…visit ITLearnMore – Most Trusted Website for all Learning Needs by Students, Graduates and Working Professionals.
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This SAP SD Study Material & Configuration Guide is extracted from my training material which I provide to my students.
This material is enough for you to get a SAP SD JOB, I even provide 1000+ Interview questions along with SAP SD Study Material.
I will update this document frequently ,so please check for new versions of my SAP SD Training study material.
S4 HANA sattlement management_Ganesh Tarlana Ganesh Tarlana
Settlement Management functionality supports all types of settlement processes, including core business processes that need to be fully integrated in the order-to-cash cycle or within in a procure-to-pay scenario, such as condition contract settlement (rebate settlement), as well as standalone processes, whereby you provide special financial settlement services for your business partners
Prepare for your interview with these top 20 SAP SD interview questions. For more IT Profiles, Sample Resumes, Practice exams, Interview Questions, Live Training and more…visit ITLearnMore – Most Trusted Website for all Learning Needs by Students, Graduates and Working Professionals.
Looking to add weight to your resume? Check out for ITLearnmore for varied online IT courses at affordable prices intended for career boost. There is so much in store for both fresh graduates and professionals here. Hurry up..! Get updated with the current IT job market requirements and related courses. For more information visit http://www.ITLearnMore.com.
This SAP SD Study Material & Configuration Guide is extracted from my training material which I provide to my students.
This material is enough for you to get a SAP SD JOB, I even provide 1000+ Interview questions along with SAP SD Study Material.
I will update this document frequently ,so please check for new versions of my SAP SD Training study material.
This e-book is an insightful summary of building the best-in-class credit scoring model capable of streamlining information, reducing bad debt, and predicting bankruptcy.
One of the major issues in the company is the controlling of the collection period and developing optimum credit policy that minimizing the company loses, i.e how to trade off and balance between two costs, the first is carrying costs and the second is the opportunity costs of a particular credit policy. In other wards to define the point where the total credit cost is minimized.
http://thebestcompanys.com/credit-monitoring/company/credit-karma/
Credit Karma is a free credit monitoring service that provides customers with a secure way of understanding and managing their credit. Through data-driven resources, the experts at Credit Karma are equipped to help customers take control of their financial health
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necessary to increase the sales and the profits of the firm.
But at the same time investment in this asset involves cost
consideration also
Financial Management Presentation on topic Receivables Management by MBA Students of the University of Hyderabad.
Madhuri 18MBMB03
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This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
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Credit Management in SAP SD
1. CREDIT MANAGEMENT
Credit management is nothing but managing the credit limits of the customers.
Roles and Responsibilities of credit department:
1. Fixing the credit limits.
2. Monitoring the day to day transactions.
If any customers credit limit exceeds blocking the next transaction.
3. Reviewing the credit limits.
4. Releasing the orders which are blocked for credits.
SAP has provided two kinds of credit checks to carryout credit management functions:
I. Simple Credit Check
II. Automatic Credit Check
Difference between simple and automatic credit check:
Simple Credit Check Automatic Credit Check
I. In simple if customer’s credit limit exceeds
we can block at order level only.
I. In automatic if customers credit limits
exceeds we can block at order, delivery and
PGI level.
II. In simple we don't have concept of risk
categories.
II. In automatic we have concept of risk
categories.
III. In simple system considers only
receivables.
Receivables mean open items. Open items
means invoice raised to customer but not yet
paid.
III. In automatic system considers open order
values, open delivery values, open invoice
values and open item values.
If credit limit has been reached, we can set the following system responses
A - Warning
B - Error message C - Delivery block
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 1
2. CREDIT MANAGEMENT
Credit Control Area:
Credit control area is an organizational element which takes care of all the credit management
activities within the company code.
I. Centralized Credit Processing:
Company Code 1
Credit Control
Area
Company Code 2 Company Code 3
If single credit control area is taking care of multiple company codes then we call it as
centralized credit processing.
II. De-Centralized Credit Processing:
Credit Control Area 1
Company Code 1
Credit Control Area 2 Credit Control Area 2
Company Code 2 Company Code 3
If single credit control area is taking care of single company code then we call it as de
centralized credit processing.
Credit Management is integration between
Configuration of Credit Management:
SD and FI.
de-
Simple Credit Check:In simple credit check system compares the credit exposure with payers
credit limit. The credit exposure results from the total of the net document value and the value
of the open items.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant)
Page 2
3. CREDIT MANAGEMENT
1. Define Credit Control Area:
Path: SPRO > Enterprise structure > Definition > Financial accounting > Define credit control
area
Go to new entries and create
Update: It controls which sales document should be updated in credit management.
000012:The update group "12" will help to update all the open order values, open delivery
values, open invoice values and open items.
000015:The update group "15" helps to update open delivery values, open invoice values and
open items.
System considers update group "15" when we are doing delivery without order reference.
000018:It updates all open order values, open invoice values and open item values.
System considers update group "18" in service process and third party where there is no
delivery.
Credit Limit: For new customers we maintain common credit limits here which will be
applicable to all the new customers.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 3
4. CREDIT MANAGEMENT
2. Assign credit control area to company code: In this configuration step we will assign the
credit control area to our company code.
Path: SPRO > Enterprise structure > Assignment > Financial accounting > Assign company code
to credit control area
“Overwrite CCA” If you set this indicator, you can overwrite the credit control area defaulted
from the company code's global data.
This applies only to document posting.
When making changes to documents, you cannot change the credit control area.
3. SD Configuration for simple credit check
a. Assign credit limit check to the document type
Path: SPRO > S&D > Basic functions > Credit mgmt. /Risk mgmt.> Simple credit limit check
This we can do by following the path or we can assign directly in the document type.
Using Parameters we can configure according to the requirement.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 4
5. CREDIT MANAGEMENT
Here Credit group is not required for Simple Credit control area; it is required only for
automatic credit control area.
b.Go to our pricing procedure
Maintain subtotal "A" for the net value
We are taking simple pricing procedure here to perform the credit management.
Whichever values we want to update in credit management, use subtotal “A” against that
value.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 5
6. CREDIT MANAGEMENT
4. Maintain Credit Limits:
The T. Code to maintain credit limits is "FD32"
We will maintain credit limits in the combination of "customer and credit control area"
Customer: 112
Credit Control Area: SPI1
Select all the views and go to status view and maintain credit limits and save.
Create Order and check.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 6
7. CREDIT MANAGEMENT
So, here system gives message that credit limit has been exceeded. If we want we can proceed
further creating order by clicking on tick mark .
II. Automatic Credit Control:
Configuration steps for automatic credit control:
1. Define Credit Control Area: In this step we define automatic credit control area "SPI2".
Assign the defined credit control area to our company code "SPIL".
2. Define Risk Categories: In this step we are going to define risk categories for customers. FI
consultant will define risk categories.
Path: SPRO > Financial accounting (New) > Accounts receivables and account payable > Credit
management > Credit control account > Define risk categories
Generally we classify risk categories into 3.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 7
8. CREDIT MANAGEMENT
i. High risk ii. Medium risk iii. Low risk
While defining risk categories itself we will assign them to credit control area.
3. Define Credit Group: Credit group controls which transaction has to blocked if customer
credit limit exceeds.
Path: SPRO > S&D > Basic functions > Credit mgmt. /Risk mgmt.> Credit mgmt.> Define credit
group
We define 3 credit groups. One is for order, one is for delivery and other is for PGI.
After defining credit groups, we need to assign them to sales document and delivery document.
Path: SPRO > S&D > Basic functions > Credit mgmt. /Risk mgmt. > Credit mgmt.> Assign sales
documents and delivery documents
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 8
9. CREDIT MANAGEMENT
4. Define Automatic Credit Control: We define automatic credit control with the combination
of credit control area, risk category and credit group.
We have 3 credit control areas, 3 risk categories and 3 credit groups.
CCA Risk Category Credit Group
SPI2 SP1 (High risk) S1 (Order level)
SPI2 SP2 (Medium risk) S2 (Delivery level)
SPI2 SP3 (Low risk) S3 (PGI)
Path: SPRO > S&D > Basic functions > Credit mgmt. /Risk mgmt. > Credit mgmt. >Define
automatic credit control area
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 9
10. CREDIT MANAGEMENT
Fields in Automatic Credit Control:
1. Item Check: If we check this particular field system performs availability check at every line
item. If customer credit limit exceeds system will give either warning message or error message
If we uncheck this, system will perform credit check while save the sales document.
2. Deviation in %:After releasing order which is blocked for credit and if user is trying to change
the value in the sales order then system will again block the order for credit.
If we maintain some percentage here then after releasing the order which is blocked for credit,
system will allow changing the order value up to that percentage. If percentage exceeds then
system will again block the order for credits.
3. Number of Days: If we maintain number of days here then after releasing the order which is
blocked for credit, if there is no further process with in the number of days then system will
again block the order for credits.
4. Credit Limit Seasonal Factors: If we want to increase or decrease the credit limit during a
particular period then we maintain credit limit seasonal factors.
5. Static Check: If we check this field, system considers open order values, open delivery values,
open invoice values and open item values while performing credit check.
6. Reaction: This field controls how system should respond if the credit limits of a customer
exceeds. Whether to give warning message, error message or no message.
7. Status/Block: This field controls whether to block the order or not if customer credit limit
exceeds.
If we check this then only system will block the order if not it won't block.
8. Open orders and Open deliveries: If we check these two fields system considers open orders
and open deliveries values while performing credit check.
9. Dynamic: In dynamic, system considers all open order values, open delivery values and open
item values. But any open order, if the delivery creation date is exceeding the horizon date then
that order will not be updated in credit management (FD32).
Q.Client requirement is he wants to change horizon period from month to days. Where is the
control?
A. We can to this by changing month to days in info structure "S066"
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 10
11. CREDIT MANAGEMENT
10. Document Value: If we check this and if we maintain "maximum document value", While
creating sales order system will check sales order value with the maximum document value. If
sales order exceeds maximum document value then system will block the order for credit limit
even though the customer is having enough credit balance.
Here the reason for blocking is maximum document value.
11. Critical Field: If we check this, while creating sales order if user changes any of the critical
fields then system will block the order for credit, even though the customer is having enough
credit balance.
Critical fields in sales document are:
i. Payment terms
ii. Additional value days
iii. Fixed value date
12. Next Review date: If we check this, while creating sales order system will check today's date
with next review date which maintained in "FD32".
If today's date exceeds next review date then system will block order for credit. The reason is
review date is passed.
Note: We maintain last review date and next review date in FD32 status views.
13. Open Items: If we check this field, while creating sales order system will check whether the
customer is having any open items or not. If yes, then system cumulates the value of open
items and system will also check is any of the open items are overdue. If yes, system cumulates
the values of overdue items and calculates the percentage between the open items value and
overdue item value. If percentage exceeds "Max. Open item" percentage then system will
block the order for credit.
14. Oldest open item: Oldest open item is nothing but overdue item i.e., payment terms
exceeded but not yet paid.
If we check this while creating sales order system will check for this customer whether there
are any invoices which are overdue. If yes, system blocks the transaction.
Note: If we check both open items and oldest open items system will give preference for oldest
open items.
15. Payer: We use this field if we have multiple payers for a single customer.
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 11
12. CREDIT MANAGEMENT
If we check this then system considers only that particular payer's invoices while performing
open item check and oldest open item check.
If we uncheck this, system considers the invoices for all the payers who are in a group while
performing open item check and oldest open item check.
We always maintain credit limits for payer.
Q. How to group multiple customers into single credit limit?
A. We maintain credit limit for one customer and we assign that customer as credit account for
remaining customers.
Go to edit > change credit account
And give first payer number and maintain risk category.
16. Highest Dunning Levels: Dunning means sending reminders to customers for making
payment.
If we check this and if we maintain highest dunning level, if that dunning level reaches then
system will block for credit.
17. User1, User2, User3: User1, User2, User3 are user exits.
We use these user exits if the client requirement related to credit management is not fulfilling
with the standard SAP.
SAP has provided 3 user exits for credit management.
If we are using first user exit then check "User1"
If we are using second user exit then check "User2"
If we are using third user exit then check "User3"
The path for searching user exits is:
Path: SPRO > S&D > System modifications > User exits
Note:
1. The T. Code to release the credit block order is "VKM3"
2. The T. Code to release the sales document and delivery is "VKM4"
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 12
13. CREDIT MANAGEMENT
3. The T. Code to release delivery document is "VKM5"
4. The T. Code to see info structure is "OMO1"
Note: The info structure for credit management is "S066"
By Srinivasulu Algaskhanpet (Sr. SAP SD Consultant) Page 13