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Tuesday, August 2, 2011

How to configure credit management in SAP

Credit Management is a very important area in SAP; where most of SD and FI consultants have to work on. Therefore today I thought of sharing most important configuration steps involved in SD credit management.

If you want to have one credit master record (FD32) for group of customers, please click this link.

Happy Reading!!

Please feel free to post your suggestions, feedback and comments!

Author: Anupa Wijesinghe
Credit Management in SAP


  1. Thanks for sharing this very thoughtful feed regarding Credit Management. You're tips were pretty useful. I just have to agree with you, credit management is a serious system that business should not take for granted and sent to risk. It's as important as making sure that your business is keeping on the right track.

    1. Thanks for referring my article and for the well positive comments!

  2. Hi Anupa,

    Great work with a small error. In the second slide of credit control area, you have left "Risk Category" blank.

    I thought at first you would fill this up when you go to the step Define Risk Categories, but you haven't.

    Just because of this reason I always make it a point to first create Risk Categories, and then go to the credit control area, and fill them appropriately.

    However, you each article is a great attraction for me.

    Kind Regards,

    1. Hi Sridhar,

      Thanks for your comment!
      When you configure “Define Credit Control Area” it is not mandatory to specify the ‘Risk Category”. This step is done only if you need to set a “Default” risk category attached when creating new customers under this credit control area.
      In a business scenario where you have multiple risk categories, you cannot set a default risk category. Relevant authorized person has to decide what the risk category should be based on customer history.
      Therefore assigning a default risk category to credit control area step is not mandatory.
      But when creating a new customer credit master in transaction FD32, you have to assign relevant risk category for that customer.
      Hope this clears your doubt.

  3. Even i didnt configure credit mgmt still my order is blocked for credit limit what could be the reason?

  4. Hi Anupa,

    how can i connect with you, i have a question where Sales Orders getting hold due to past due. but the past due is in credit position, meaning customer has a credit memo they have not taken for over 90 days.

    can we configure SAP to ignore credit past due up to certain amount, like $5000?

    1. Hi,
      In the automatic credit control settings, you can only define how many days and percentages that past due items can go. Not the amount.
      1) Maximum % of overdue items in open items
      2) Number of days which the open items are overdue

      Therefore you will have to try credit management user exits to do this. This can be achieved via "User 1 / 2 / 3" options under automatic credit control settings. You will have to ask a developer to do the required coding for this.


    2. Thanks Anupa, i have sent an email to our SAP Developer.

      Want to find out if the below condition can be implementd via user exits credit block:

      1. if risk category = x, and total past due less than 1% of credit limit, please ignore credit check.

      Because you are saying it doesnt take an amount just %? So i cannot request to create a condition where if AR aging below $5000 including a creditmemo/chargeback that makes the Aging a negative (we owe them), please ignore?

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  7. Your article contains very much information about the credit management. Your article is very informative and nicely describes the configuration process of credit management in SAP. I am thankful to you for sharing this article here. Credit Management Consultants in Australia