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credit management

hi friends

in credit management,we can't assign 2 credit control area under one company code .why. what is the logic behind this

regards

santosh

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3 Answers

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    Former Member
    Jun 18, 2008 at 04:00 PM

    Hi,

    outstanding recievables can spoil the business process. to

    control credit limits in sap system we can configure credit

    control area.

    one company code can hav one credit control area only

    but one credit control area can hav many company codes

    i.e. u can assign one credit control area to many company

    codes.

    the relationship is one to many

    The Logic i guess is Credit information can be made available per customer within a credit control area.

    One company will never follow different policies. For example if your standard policy is fixed you will affix with that. And credit control area Defines these policies for the customers credit account management.

    Hope this will help you,

    Reward Point if helpful.

    Thanks,

    Raja

    Edited by: Raja Singh Chhabeda on Jun 18, 2008 6:05 PM

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    Former Member
    Jun 18, 2008 at 02:16 PM

    You can assign multiple company codes to a credit control area, but not vice versa.

    If a customer exceeds their credit limit, you would want to block sales for the entire company code. It wouldn't make much sense to allow them to have sales in the same company code once they have already exceeded their limit for an assigned credit control area for that same company code.

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    Former Member
    Jun 18, 2008 at 03:48 PM

    We can assign more than one credit control area to a company code.

    Follow the below path

    SPRO->Financial Accounting->Accounts Receivable and Accounts Payable->Credit Management->Credit Control Account->Assign Permitted Credit Control Areas to Company Code.

    Ramesh

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