| # Credit rating The continuation of a sales order can depend on the credit checking of the business partner. For every customer, you must select a credit rating in the Invoice-to Business Partner (tccom4112s000) session. The credit rating determines the action to be taken when you handle sales orders for the business partner and the resulting open invoice amount exceeds the business partner's credit limit. For example, the action can be to check the business partner's credit, or to hold the sales order. You define the credit rating and the corresponding actions in the Credit Ratings (tcmcs0564m000) session. Whether credit checking takes place and which action is taken depends on a combination of the following settings: The Credit Rating selected for the business partner in the Invoice-to Business Partner (tccom4112s000) session. The credit rating action selected for the credit rating in the Credit Ratings (tcmcs0564m000) session. The setting of the following sales parameters in the Sales Order Parameters (tdsls0100s400) session: Signal if Credit Limit is Exceeded Block if Credit Limit is Exceeded Pre-Defined Credit Rating Code Change Customer's Credit Rating The selection of the Credit Check check box for the sales order type in the Sales Order Types (tdsls0594m000) session. If the credit rating action is Check Credit, LN can check the credit limit at various phases in the order procedure. In the Credit Ratings (tcmcs0564m000) session, you can select the following stages in the procedure at which LN must perform a credit check: Credit Check Sales Order Entry Credit Check Release to Warehousing Credit Check Confirm Shipment LN can display a warning or block the order if the credit limit of the invoice-to business partner is exceeded. If the credit rating action is Always Hold (Credit) or Always Hold (Overdue Invoice), LN always blocks the sales order entry, the release of the sales order to Warehousing, or the shipment, without checking the business partner's credit limit. In the blocked order lines, the action Always Hold (Credit) or Always Hold (Overdue Invoice) indicates the blocking reason. In the Hold Reason by Business Partner Type (tdsls0193s000) session, you can select a reason code for blocking the sales orders per business partner type. For each hold reason, you can specify the actions that can be taken when a sales order line is put on hold for a specific hold reason. If the sales order is blocked, you cannot continue the order procedure. After a release of the blocked sales order line in the Blocked Sales Order (Lines) (tdsls4520m000) session, the order procedure can continue. Related topics Order blocking Overview of sales order handling |