Hi Manish,
Please follow the below process to complete the requirement
Process
- Now let’s see how this works by taking an example into consideration
Example: A new customer”13119” was created with credit limit 50,000 INR. Therefore my Credit Master (FD32) will look as follows. No sales value is assigned yet as no sales order is created in the system
- If I Create a sales Order for this customer below 50,000 INR, system will allow me to create the sales document without any problem. But if my order value exceeds 50,000 INR System will block the sales order using the credit management component
- In this case, it is not possible to deliver this sales order as it is credit blocked. Now the credit master looks as follows
- But if customer provides a payment Guarantee ( BG) we should be able to process the sales order, as payment is guaranteed by the Bank.
Example: Let’s say customer is providing a payment guarantee worth 100000 INR, we need to create a financial document in the system to represent that value and attached into the sales document.
Please note, this financial document will not change the credit limit of the customer neither it will post any value into FI.
- As soon as the financial document is attached to a sales order, system will not consider that sales order value for credit calculation. It will be totally handled under the financial document management component
Create financial document:
Tcode: VX11N
FOR BG
- In the Create Financial document screen, enter the details like
- Financial Document category
- Financial Document Type
- Company Code
- Click Enter
- The following Window will be displayed
- Enter the below details
- Sold to Party
- Ship to Party
- Bank Country
- Bank Key
- Financial Document Value,
- Currency
- Payment Terms
- Click on Dates/Delivery dates and enter the below fields
- Opening Date
- Validity End Date
- Under the” Banks” tab we can maintain Opening bank and Negotiating bank etc.. as shown above
- Click on “Status” tab
- Under the tab “Status” we need to maintain the relevant status of the financial document.
- The following window will be displayed
Example: In order to use the BG Document in Sales Orders, we need to have the status “D - Document is is available and can be used” attached to the document
Save the financial document
assume financial document created "82"
Using Payment Guarantees in Sales Orders
- Now we can use the financial document (BG) in sales order (Header or Item) In the previously created sales order, we can go to Header or Item level Billing Tab
- Attach the relevant BG document to the sales order line item
- Now we should be able to save the sales order without blocked by the credit management (As payment is guaranteed by the bank)
Now we look back to the credit master record of the customer, it will be as follows(Compare previous FD32 screen with below) This is because my sales order was covered by BG #82, and therefore credit management component is not taking the value into consideration
- Now if we look the financial document master, we will be able to see the usage of the document against sales orders.
We can view the same in graphical from as well
NOTE: User can decide whether a particular sales order is covered by a BG or Not.
Example: If customer place another sales order (Which is not covered by BG), then based on the sales order value, it will be blocked/unblocked by the credit management.
Hope this will helpful....
Thanks,
Anil.G