Credit Management. Week 12 – Where we stand. Exams & Project. Business Processes & Functions. ERP systems. Credit & Receivables. Management of Operations Information/ ERP. ERP Project. Sales Order Process. Accounting. Process Modeling. Pricing. Production. Purchasing Process. MRP.
Exams & Project
Business Processes & Functions
Credit & Receivables
Management of Operations Information/ ERP
Sales Order Process
Sellers also provide the credit for more sales,
What’s the issue ?
FI people wants to reduce the risk, so there is a credit limit assigned to customers
Credit Control Area (##FS) sets and controls the credit Limit – manages the credit limit
Which process should trigger the credit control check?
Cust: Health Express
Credit limit: $10,000
Ttl. commit: $6,000
Order amount: $5,000
Credit limit exceeded
Blocked document list
Pick, pack & ship order
Bill customerCredit Control Process
What is total commit-ment?
Value of current order + Other total commitments =< Credit limit ?
Open order + Open delivery + Open Billing + Open Receivables (billing document)
Credit Control checks can be set at various steps of Sales Order process (Sales Order creation, Delivery creation. Goods issue,)
Automatic Credit Control
Determine points at which credit checks are to be made
Open order: order which has not been delivered
Open delivery: delivery which has not been invoiced
Open billing: billing document which has not been forwarded to accounting
Open items (accounts receivable): documents that have been forwarded to accounting but have not been paid by the customer
- Credit limit: what a company is allowed to owe- Total commitment: what a company currently owes
Delivery items not yet billed
Not transferred to FI (optional)
This exercise tests your understanding of Fitter Snacker’s current credit-check system. KLM has unintegrated Sales Order Information Systems and Accounting Information Systems. You are given background data and information about documents in the system as follows:
- Background data:
- Current sales order:
- Document in system:
1. Given the state of the current systems, will credit be granted or denied for KLM Corp.’s current order?
Since the purchase order for NRG-A is not in the accounting system, KLM would allow it. 1584, 864
2. Suppose FS has an ERP system for accounting and sales order, should credit be granted or denied?
Purchase order KLM 82332 for three cases (864 bars) of NRG-A. This order is in the Sales Order Information Systems, but it has not been transferred to the Accounting Information Systems (thus, Accounting does not yet know about this sale).