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Chapter 5

Credit limit
126

Amount of
credit used

Source Line: SAP AG.

FIGURE 5-6 Credit management for Health Express

Figure 5-7 shows the SAP ERP screen where blocked sales orders are listed. Most
companies have an employee who is responsible for reviewing blocked sales orders
(perhaps every two hours) and taking corrective action. The advantage of using SAP ERP
to manage credit is that the process is automated and the data are available in real time.
The user can double-click the sales order to see company information, such as contacts, or
to see payment history.

Options to release,
reassign, reject, or
forward a blocked
sales order

Source Line: SAP AG.
FIGURE 5-7 Blocked sales order

With Fitter’s current system, the sales order clerk must manually check credit. If the
clerk fails to do this, then a customer who is a bad risk may receive more credit. However,
even when the clerk does perform the manual credit check, the credit decision can
frequently be made in error, since the data are not current. With the SAP ERP system, the
check is automatic, the data are up to date, and it is a simple matter to review blocked
sales orders.

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