How To Fix WS120 - Credit limit of payer & exceeded in area & by & &

SAP Error Message - Details

• Message type: E = Error

• Message class: WS - Supplier Billing Document

• Message number: 120

• Message text: Credit limit of payer & exceeded in area & by & &

Self-Explanatory Message

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• What is the cause and solution for SAP error message WS120 - Credit limit of payer & exceeded in area & by & & ?

  The SAP error message:
  WS120: Credit limit of payer & exceeded in area & by & &
  
  Meaning / Cause:
  This message indicates that the credit limit assigned to the payer (customer) in a specific credit control area has been exceeded by a certain amount. In other words, the total open receivables plus the current order value exceed the predefined credit limit for that customer in that credit control area.
  
  Payer: The customer or payer whose credit limit is checked.
  Credit Control Area: The organizational unit responsible for credit management.
  Exceeded by: The amount by which the credit limit is exceeded.
  The system performs a credit check during sales order processing or delivery creation, and if the credit limit is exceeded, this warning or error is triggered.
  
  
  When does it occur?
  
  During sales order creation or change.
  During delivery creation or billing.
  When the system performs a credit check (depending on configuration).
  If the credit limit is set and active for the customer in the credit control area.
  
  
  Cause details:
  
  The customer’s open items plus the value of the current order exceed the credit limit.
  Credit limit is maintained in the customer master (transaction FD32).
  Credit control area is assigned to the sales organization and company code.
  Credit check is active in the sales document type or delivery type.
  The system is configured to block or warn when credit limit is exceeded.
  
  
  Solution / How to resolve:
  
  
  Check the credit limit:
  
  Use transaction FD32 (Change Customer Credit Management) to check the credit limit for the payer in the relevant credit control area.
  Verify if the credit limit is set correctly and if it needs to be increased.
  
  
  
  Review open items and credit exposure:
  
  Check the customer’s open invoices and outstanding payments.
  Use transaction FBL5N (Customer Line Item Display) to review open receivables.
  Check if there are overdue payments or blocked invoices.
  
  
  
  Adjust credit limit if appropriate:
  
  If the customer is reliable and the business requires, increase the credit limit in FD32.
  Ensure proper authorization before increasing credit limits.
  
  
  
  Release or block sales order:
  
  Depending on the credit check configuration, the system may block the order.
  Credit managers can release the order manually if the credit limit is exceeded but the order should proceed.
  
  
  
  Change credit check settings:
  
  Review credit check configuration in OVAK (Credit Management: Define Credit Check) and VOV8 (Sales Document Type).
  Adjust the credit check indicator or tolerance limits if necessary.
  
  
  
  Clear open items:
  
  Encourage the customer to clear outstanding payments to reduce credit exposure.
  
  
  
  Use alternative credit control areas or credit groups:
  
  If applicable, assign different credit control areas or credit groups with different limits.
  
  
  
  
  Related Information:
  
  
  Transaction codes:
  
  FD32 – Change Customer Credit Management
  FD33 – Display Customer Credit Management
  FBL5N – Customer Line Item Display
  OVAK – Define Credit Check
  VOV8 – Sales Document Type configuration
  
  
  
  Credit Management in SAP:
  
  Credit limits are maintained per credit control area.
  Credit control area is assigned to company code and sales organization.
  Credit check can be configured to give warning or block sales documents.
  
  
  
  SAP Notes / Documentation:
  
  SAP Help Portal: Credit Management in SAP ERP
  SAP Note 123456 (example) for credit limit exceeded issues (check SAP Support Portal for relevant notes).
  
  
  
  
  Summary:
  The WS120 error means the customer’s credit limit is exceeded in the specified credit control area by a certain amount. To resolve, check and possibly increase the credit limit, clear open receivables, or adjust credit check settings to allow the order to proceed.
  
  If you need help with specific steps or configuration, please provide your SAP system version and the context where the error occurs.