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Credit control in multi company

Hello all,

I would like to confim about credit control in multi company.

I received a requirement to share same credit limit with multi company.

Each company (subsidiary) place sales order by himself but they have to share this credit line as a pool (not separate it to each subsidiary ).

Currently, each company has own company code and it is all independent legal entity needs to create BS/PL/GL separately.

I understand that we can define the relationship between company code and credit control area by Trcd: OB38.

Are there any issue if we define one credit control area has multi conpany?

If you have any experience for above your idea would be so much appreciated.

Thanks and Best Regards,

Satoe

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1 Answer

  • Posted on Jul 24, 2014 at 04:59 AM

    Hi

    Technically, you can have one credit control area assigned to multiple company codes. However, there is a restriction on how credit check happens. The same limit will be available across all company codes, since the credit check happens at the level of the credit control area and not at the company code level. For Eg, you have a credit control area as CCA1 and Company Codes as CO1, CO2 and CO3. You assign all the company codes to CCA1. Now the business requirement is to have the credit limit as:

    CO1 USD 1000

    CO2 USD 2000

    CO3 USD 3000

    You will than set up a credit limit of USD 6000 in Credit Control Area CCA1. If a customer exhausts the credit limt for a Sales Order of USD 6000 in CO1, the sales order will not be created as CO2 and CO3.

    That said, you can create three credit control areas for each company code and in the credit control area configuration, maintain the check box for "All Company Codes" under organizational areas. There after in FD32 you will have to maintain two limits, one Global Limit and also individual limit. This will enable check at the company code level and also you will be able to check the credit exposure across three entities for a customer.

    Thanks & Regards


    Sanil Bhandari

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