Define & Assign Blocking Reason in SAP OVV4
Jessica Blake
⚡ Smart Summary
Blocking reason in SAP is used to block billing for a customer or document. This resource explains what a blocking reason is, the main types of blocks, and how to define one and assign it to a billing type.
What is Blocking Reason?
A blocking reason in SAP is used to block bill creation for a customer, so that an invoice cannot be generated while the block is in place. Blocking reasons are defined according to business requirements, and after a blocking reason is created, it is assigned to the corresponding billing document types and then used during document processing. A customer can also be blocked directly in the customer master.
There are many reasons to block a customer. Some common ones are:
- The customer is blacklisted due to involvement in unlawful activities.
- The customer has defaulted on a payment.
Setting up a billing block is a two-step process: first you create the blocking reason, and then you assign it to a billing type so that it becomes available in document processing. A well-configured blocking reason therefore protects revenue and compliance, because it stops an invoice from going out to a customer who should not be billed yet. Let us look at these steps in detail.
Types of Blocking in SAP SD
A billing block is only one of several blocks SAP uses to control the sales process. Each block stops a different step, so it helps to know where each one applies before configuring a blocking reason.
| Block type | What it stops | Typical use |
|---|---|---|
| Order block | Creating or processing a sales order | Hold a risky customer’s orders |
| Delivery block | Creating a delivery for an order | Stop shipment until a check clears |
| Billing block | Creating an invoice for an order or delivery | Hold invoicing until values are confirmed |
| Credit block | Processing when a credit limit is exceeded | Automatic hold from credit management |
This tutorial focuses on the billing block, which prevents an invoice from being created. It is defined with S_ALR_87007670 and made available by assigning it to a billing type. Choosing the correct block matters, because a billing block still lets the order and delivery proceed, whereas an order or delivery block stops the process much earlier in the cycle.
Step 1) Create Blocking Reason
First, define the billing blocking reason using transaction S_ALR_87007670.
Step 1.1)
- Enter T-code S_ALR_87007670 in the command field.
- Click on the Choose button.
Step 1.2) Click on the New Entries button.
Step 1.3)
- Enter the block code and the billing block description.
- Click on the Save button.
Step 1.4) Click on the Save 
button. A message “Data was saved” is displayed.
Step 2) Assign Blocking Reason
Next, assign the blocking reason to a billing type using transaction OVV4, so that it appears in document processing.
Step 2.1)
- Enter T-code OVV4 in the command field.
- Click on the New Entries button.
Step 2.2)
- Enter the blocking code.
- Enter the billing type.
- Save the record.
Step 2.3) A message “Data was saved” is displayed.
Key Points and Best Practices for Billing Blocks
A few points make billing blocks easier to manage and keep invoicing under control:
- Define before assigning: A blocking reason only works after it is both created in S_ALR_87007670 and assigned to a billing type in OVV4.
- Assign to the right billing type: The block appears in the Billing Block field of a document only for the billing types it is assigned to, such as F2.
- Apply where needed: A block can be set in the customer master, defaulted by the sales document type, or entered manually on a sales document.
- Remove to release invoicing: Clear the billing block on the document once the issue is resolved, so the invoice can be created.
- Use clear descriptions: Give each blocking reason a meaningful description so users understand why a document is on hold.
With these practices, billing blocks give a controlled way to pause invoicing for risky or unresolved cases without deleting the underlying document.
