How to Block Customers
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 )
[ 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
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.