Here’s a simple and quick guide on how to configure SAP Credit Management.
A. Define Credit Control Area – a credit control area is an organizational unit in SAP which specifies and checks a credit limit for customers. Assignment rule is; more than one company code can use the same credit control area. However, one company code can only be assigned to one credit control area.
Path: IMG → Enterprise Structure → Definition → Financial Accounting → Define Credit Control Area.
Transaction Code: OB4 5
B. Assign Company Code to Credit Control Area – as a must pre requisite, a Company Code and a Credit Control should be created. In this step you assign a Company Code to a single Credit Control Area. Please note that you can assign multiple Company Codes to one Credit Control Area, but you can’t do the opposite.
Path: IMG → Enterprise Structure → Assginment → Financial Accounting → Assign company code to credit control area.
Transaction Code: OX16
C. Define Preliminary Settings for Credit Management – here, you can make the client-specific settings for your company’s credit management. You can set parameters for credit checks and the calculation of days sales outstanding.
Path: IMG → Financial Accounting (New) → Accounts Receivable and Accounts Payable → Credit Management → Credit Control Account → Define Preliminary Settings for Credit Management.
Transaction Code: SPRO
D. Define Risk Categories – here, you define credit risk categories for each controlling area. You can define for example 3 credit categories to allow the distinction amoung low, medium and hirg risk accounts. Your company can then report based on those categories you’ve defined.
Path: IMG → Financial Accounting (New) → Accounts Receivable and Accounts Payable → Credit Management → Credit Control Account → Define Risk Categories.
Transaction Code: OB01
E. Define Credit Representative Groups – here, you define user groups for each Credit Control area. Next, you assign each customer to a group. The group is used as a selection criterion for the credit data list.
Path: IMG → Financial Accounting (New) → Accounts Receivable and Accounts Payable → Credit Management → Credit Control Account → Define Credit Representative Groups.
Transaction Code: OB02
F. Define Interval for Days in Arrears in Credit Managemnet – here, you enter the interval for days in Arrears. The days in arrears interval is used for dividing the customer open items in all company codes assigned to the Credit Control Area by due date. The interval consists of up to five-day limits so that there are up to 6 intervals for dividing the open items.
Path: IMG → Financial Accounting (New) → Accounts Receivable and Accounts Payable → Credit Management → Business Transaction: Credit Monitoring → Define Intervals for Days in Arrears in Credit Management.
Transaction Code: OB39