How to Block Customers in SAP SD
How to Block Customers
Related Trainings
Concept
Sometimes it is necessary to temporarily or permanently block customers. When a customer is blocked, we can configure the system to specifically block a type of sales transactions or all of the sales transactions. There could be multiple reasons for the same. Some examples are given below.
- Customer has repeatedly defaulted on payments and we choose not to sell him anymore
- Customer has been blacklisted
- Customer’s country is on export embargo. ( Ideally SAP GTS should be used, but no SAP installation use SAP Global Trade )
Menu Path
[ Logistics -> Sales and Distribution -> Business Partner -> Customer -> Block ]. The tcode for the same is [VD05]. In the selection Screen, select the customer to block along with the specific sales area in which you want the customer to be blocked( if necessary ).
You can block the customer from being entered in any of the sales transactions, of the deliveries or the billing documents. Typically, the customer is blocked from sales transactions only, so that no new orders/quotes are being created for that customer, but existing invoices are not stopped. However, this depends on the requirement. SAP allows us to block a customer from any or all of these 3 transactions.
The blocking reasons in each of the drop downs can be freely defined in configuration
Configuration
The blocking reasons for the sales, delivery and billing could all be different if required. The menu path for the same are as follows.
Sales Blocking Reasons => [SPRO -> IMG -> Sales & Distribution -> Sales -> Salesa Documents -> Define and Assign Reasons for Blocking ] or [OVAS]
Delivery Blocking Reasons => [SPRO -> IMG -> Logistics Execution -> Shipping -> Deliveries -> Define Reasons for Blocking in Shipping]
Shipping block is a little more involved. It has the following options. For example, the block Credit Limits (01) here effects only the goods confirmation, picking and goods issue only. That means that when an order is created for a customer with a delivery block of 01 , the goods confirmation is blocked, the pick list is blocked and the goods issue is blocked.
Billing Blocking Reasons => [SPRO-> Sales & Distribution -> Billing -> Billing Documents -> Define Blocking Reasons for Billing ] . Here the billing blocking reasons are defined.
Demo on How to Block a Customer
Block the customer using the delivery block ’01′ on customer 1400. Now try to create the sales order. The system response will be a warning message “Customer 1400 has delivery block: Credit limits”. However, it will allow you to save the order. When creating the delivery, you will get the error message “Ship-to party is blocked for delivery: 000000140″ since this is a delivery block.
Customer 1400 is blocked for delivery; order 14072 has been created and saved with warning “Delivery is blocked”. Delivery could not be created due to error message ” Sales order is blocked for delivery”
Customer 1400 was blocked at vd05 with deliver block 01 – Credit limits.
A Sales Order “testROn” was created with a warning “Customer 1400 has delivery block: Credit limits” and saved (13855). The delivery vl01n encountered and error “Order cannot be delivered: Sales order is blocked for delivery :Credit limits”
Customer 1400 was blocked at vd05 with deliver block 01 – Credit limits. A Sales Order WALMART002 was created with a warning and saved. The delivery vl01n encountered and error “@5C\QError@ WALMART002 Sales order is blocked for delivery: Credit limits”
Customer 16386 is delivery blocked with 01 reason .Sales order 13559 is created with warning
1) Created Delivery type ZMS and delivery block type ZM and insert value into Delivery block in shipping.
2) Created billing type ZMS and define credit block type and insert value into billing blocking reason field.
3) Created sales document type ZMR and created order block 05 than insert value into sales documents block field.
Answer: Order 25502 created used demo scenario and it’s showing the error message “Sales order is blocked for delivery: Credit limits.
If the customer is to be blocked from Credit management perspective for all sales – FD32 in Credit control area – Indicator: Blocked by credit management
With this indicator, a customer is blocked for all credit management business transactions (order acceptance, delivery, goods issue). You can still, however, post invoices for goods which were already delivered.
Block the customer using the delivery block ’01′ on customer 1400. Now try to create the sales order.
Several warning are received with regard to the order – 1. When the customer is selected. 2. If you reenter the order in change mode. 3. If you try to deliver the order it displays an error log stating it could not be delivered the customer is on credit hold.
For order block, not allowed to proceed..
For delivery block, got warning..
For Billing block, nothing happened in Sales Order.. Where does this block have an effect??
Lukesh
Created new order block 04 (embargo) in SAP IMG
put order block on customer 1000000 for sales area: 1000/10/00
1. place delivery blocked 01 on ship to: 1400 (sales area: 1000/10/00)
created order 13399, received warning, but could save order
Could not create delivery, error reads that ship to is blocked
blocked 3367 customer using blocking types
successfully created following blocks
1) newsales order block created: 46
sales block assigned to doc type ZJV
using vd05 block is applied to all sales area.
2) delivery block created :17
deliver block 17 assigned to Y02(std delivery)
3) billing block created: 10
billing block assigned to Y0f2(std invoice)
I tried this and it works great. Blocked customer 34340 for delivery. Received error message as mentioned above.
I have tried and works…….also this is a very to navigate.
hi siva , i blocked the customer using delivery block 01. at the time of creating sales order it would let me save the number and keep displaying message delivery block: credit limit. Material area was in item category was also greyed out.
I think we will learn about the SPRO when we are doing configuration.
Thats right Navdeep. But in the meanwhile , you can blidly follow the menu path and do the configuration. If you are not comfortable, you can leave those until we finish configuration , which is going to be next week.
This module is very informative and easy to navigate.