Controlling Area & Credit control area

[Former Member]

Hi Guys,

What's difference between Controlling area and Credit control area assigned to company code.

Thanks in advance

Regards,

Vamsi. P.

[Former Member · Accepted solution]

Hi,

the basic difference is controlling area deals with costing. Credit control area deals with credit management. controlling area will be assigned to company code, which will take care of different types of costing happens docuemnts.

Prase

> Hi Guys,

>

> What's difference between Controlling area and Credit

> control area assigned to company code.

>

> Thanks in advance

>

> Regards,

>

> Vamsi. P.

[Former Member]

controlling area :

it is a organisation unit in the controlling module.it specifies the costing element for a paticular segment i.e what are the cost involved in producing the particular material.

credit control area :

it is an important element involved in the credit mangement. it is a organisation used to assign and monitor credit limit to the customers.

reward points ifhelpful

sriram.

[Former Member]

hi,

<b>Controlling Area:</b>

Controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization.

As well as documenting actual events, the main task of controlling is planning. You can determine variances by comparing actual data with plan data. These variance calculations enable you to control business flows.

Income statements such as, contribution margin accounting, are used to control the cost efficiency of individual areas of an organization, as well as the entire organization.

<b>CCA(Credit Control Area)</b>

An organizational unit that represents the area where customer credit is awarded and monitored.

This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.

regards,

Arun prasad