2896045 - How Credit Limit Check Works in Sales Orders

You have enabled the Credit Limit Check function in the system and maintained necessary credit limit check data. While you are still wondering how system calculates the credit limit amount in a sales order.

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SAP Business ByDesign

1. Go to the Sales Orders work center.
2. Go to the Sales Orders view.
3. Select  and open sales order ABC. (ABC represents the ID of the sales order)
4. Click on the Check Credit Limit button.
5. The following information message appears:
   Credit limit 5.000,00 USD exceeded by 7902.06 USD (5.000,00 USD represents the credit limit entered in the account master data and 7902.06 USD represents the amount by which the limit is exceeded)

The Credit Limit Check Amount displayed in the information message depends on the following:

• Credit Limit Amount maintained in the account master data.
• Credit Limit Check setting maintained in the Business Configuration. Activity: Credit Limit Check. 
• Account Balance of the open items in the receivables of the account. This is Invoiced Open Amount for the account.

Credit Limit is calculated as:

Credit Check Status = Credit Limit for account - ( Invoiced open amount + Total Net Value of the current order + Total Net Value of all not invoiced orders ).

You are able to check how system calculate the credit limit amount on this sales order by using Simulation of Credit Limit Check function.

1. Go to the Sales Orders work center.
2. Go to the Sales Orders view.
3. Select the order you want to check, and click Action - Simulate Check Credit Limit button. 
4. System opens the simulation result for the account, you shall check the result and all information used in the simulation. The simulation also displays all the not invoiced order lines, so that you can check which order lines are not invoiced and calculates in the simulation.

• Result: Credit limit 5000.00 USD exceeded by 7902.06 USD
• Credit Limit for account: 5,000.00 USD
• Invoiced open amunt:386 USD
• Total Net Value of current order (the system considers the amount only for the open items in the document): 2,440.00 USD
• Total Net Value of all not invoiced order (the system considers all the not invoiced order besides the Net Value for the current order): 10,076.06 USD

Credit Check=5,000 - (386+2,440+10,076.06)=-7902.02.

Please Note: The Not Invoiced Orders will include items that are Invoiced but are not cleared in Financials as they are required for the caculation of the Invoiced open Amount

To Verify the credit limit amount proposed by system on the sales order, you need to check the following amounts.

You need to check the Limit Amount entered in the account master data:

1. Go to the Account Management work center.
2. Select the Accounts view.
3. Open account ABC (ABC represents the ID of the account).
4. Go to the Financial Data tab
5. The amount 5.000,00 USD is entered in the field Credit Limit.

You need to check the Invoiced Open Amount of the account:

1. Go to the Receivables work center.
2. Select the Customer Accounts view.
3. Select account ABC, customer balance shows 386.00 USD. 

Please note: that the Invoiced Open Amount is determined from the receivables of the account and only the Posted Items are taken into consideration. The Statistical Items are not taken into consideration for the Invoiced Open Amount.

You need to check the Not Invoiced Orders from the order list in simulation screen. The list of orders is based on the scope selected in the business activity: Credit Limit Check.

1. Go to the Business Configuration work center.
2. Select the Implementation Project view.
3. Click on the Open Activity List button.
4. Navigate to the Fine-Tune step.
5. Open the activity Credit Limit Check.

Here you can find 3 options on how the credit limit check is scoped for this system:

• Check Current Document
  (This check considers only the value of the current document).
• Check Current Document and Other Open Orders
  (This check considers other open sales order and service order items, which have not been invoiced).
• Check Current Document and Other Open Orders Including Documents "In Preparation"
  (This check considers additionally sales orders and service orders in status In preparation).

In our example, the Check Current Document and Other Open Orders is selected.

This is how the credit limit check works in the system.

KBA 2392105 - Credit Limit Check in Sales Order is Incorrect

Support Portal Document: FAQs – Credit Limit Check in SAP Business ByDesign

Credit Limit Check; Sales Order; , KBA , csg_q , SRD-CRM-ORD , Orders & Contracts , AP-SLO-SO , Sales Order , How To