In this blog post you will get to know about Issues related Credit Management functionality with payment cards.
Usually in sales process where in payment card is used for authorization of sales transition and credit management is also active, it is observed that below are the common issues faced by many customers
- Ø Delivery created despite insufficient value
- Ø Backordered Sales Orders getting Credit Blocks
- Ø Sales order not getting block even though authorized amount is less
- Ø Unable to Reauthorize Sales order (With Payment cards) and release delivery credit block, after canceling Invoice and Goods Issue Reversal. (EWM integration scenario)
SAP S/4HANA Cloud Release
Business Users, Key Users, Consultants
Target Industry / Component
Any, Sales process having EWM Integration / SD-BIL-IV-PC
· Faster resolution of credit check issue helps in speed-up and streamline of organization process.
· Review blocked documents and release based on updated credit checks
· Carry out credit check with multiple criteria and different points in time
· Faster credit-worthiness check and reduce the risk of bad-debts
· Monitoring credit allocation and overall credit risk
Issue: Delivery created despite insufficient value.
Authorize a sales order with a limited payment card, then the sales order will not be credit block in case the authorized amount is less than the open document value.
As a result, it is possible to create the follow-up documents.
Solution: Standard behavior with manually limited cards, may not fulfil the business requirement. In this case, you can implement the attached correction instruction. Differential amount to be collected at invoice from customer.
Further details refer Note 640026 - Deliv. created despite insuffic. auth. with limited cards
Issue: Backordered Sales Orders getting Credit Blocks
1. Sales order for users is getting credit block even with credit card authorization and payment guarantee.
2. Back ordered sales item hit credit block when they are back in stock.
3. Unable to do delivery of Back ordered items due to credit block, in case of partial deliveries
Deliveries are created when the Payment Card authorization is not enough for the delivery.
For example, in case of partially delivery, the first delivery will consume the Payment card authorization, but the next delivery may have insufficient authorization. At the same time, credit management is active for this customer.
The uncovered amount by Payment Card Authorization of the delivery results in credit exposure in credit management.
As the credit limit of this customer is 0 and the credit exposure of above delivery is bigger than allowed limit, the issue happened.
Reauthorize of sales order and dummy change in deliveries, updates the credit management , exposures will get adjusted and amount covered by Payment Card Authorization will updated.
Issue: Sales order is not getting block
Cases where payment card amount is less than the total Sales value, results in open items from FI in Credit management commitment (example at times the values is 1 Cent)
As a result, it is possible to create the follow-up documents.
Solution: Standard behavior with the authorized card amounts system also check the open Commitment and if the commitment is negative than it adds to payment card values and results into credit limit check
As a result, it is possible that even the amount is less order is not blocked
Sales order xxxx, payment card only covered 56.08 which is 1 cent less than the total Sales value 56.09. and the Negative Commitment = - 0.95.
As there was already negative commitment -0.95 before, this sales order did not get blocked.
Issue: Unable to Reauthorize Sales order (With Payment cards) and release delivery credit block, after canceling Invoice and post goods reversal (In case of EWM Integration )
Sequence of events / Process Steps:
1. Sales order was created via API with a Credit Card payment authorization in the Manage Sales Order app.
2. Delivery was created and distributed to EWM in the Manage Sales Order app.
3. Outbound Delivery process updated in the various WM apps
4. Goods Issued via EWM in the Run Outbound Process
5. Invoice (Billing Type F2) was created via Manage Billing Documents app
6. Invoice (Billing Type F2) was cancelled via Manage Billing Documents app
7. Post goods reversal via EWM Run Outbound Process via Deliveries app
8. Attempted to GI the order again via Run Outbound Process via Deliveries app
When try to force a re-authorization via manage sales order app , but we cannot remove the existing authorization
Sales order created performs the credit check when saving the sales document (order/delivery), also check if it is changed to trigger a payment card authorization during the sales document save.
Either do dummy change in sales document or execute the "resolve payment card issue" job, which basically simply triggers a new save of the sales order in order, trigger a new authorization. Screen shot of the app as shown below.
An authorization in a sales order can only be used once, it cannot be split over several partial deliveries. Reason for this is, that maybe the individual deliveries are not invoiced together but in separate billing documents. Here, sharing the same authorization is impossible.
Blocked delivery cases / Situation
Case 1) Situation is delivery was created, but not yet posted goods issue (in EWM). If the authorization between delivery creation and post goods issue in EWM becomes expired, the delivery gets blocked (system will perform the credit check at delivery being saved, while doing Post goods issue in EWM and it fails due to the expired authorization).
Case 2) Situation is an invoice cancellation and Post goods reversal, as the originate authorization was already used up in the cancelled process .
Unfortunately, when using EWM it is not possible to manually trigger a new credit check in the delivery as the delivery can only be changed from EWM.
I recommended using the credit check API for a delivery recheck in this case (There is an API ( https://api.sap.com/api/API_DEL_DOC_WITH_CREDIT_BLOCK/resource ) which you can use to trigger a new credit check in the delivery.).
Use the app "Schedule Credit Management Jobs" which should also be able to resolve the situation, when a new credit check in the delivery is necessary. Maybe this is easier as compared to the API.
Make sure we can select out all the documents we need, we suggest keeping the "Next Shipping Date" and "Date of Next Credit Check" with the wide ranges? Because when we input some SD documents, we do not know the Next Shipping Date and Date of Next Credit Check of the SD documents.
"Sales Documents" field is not required if you only want to select out delivery document, As shown below
Use the app "Schedule Credit Management Jobs" for that document, as shown
Select the Job template as Check Credit on SD Documents
Update the parameters and schedule the same
As a result, it is possible to update the credit check in delivery and create the follow-up documents.
Related SAP Note / Links
640026 - Deliv. created despite insuffic. auth. with limited cards
2837213 - How to update credit limit data for a business partner in S/4HANA Public Cloud?
1453700 - Disabling Credit Checks for Payment Card Orders
792943 - Credit checks for payment cards are not executed