Credit Management

[Former Member]

Hi Every body

Define Credit control area selection screen default data automatically credit limit filed, can i know use of credit limi, why business requires that filed.

Thanks

Prasad

[Former Member · Accepted solution]

Prasad,

for running a business smoothly you have to give credit to customer, but you also required the capital to run the business, so depending on the Risk factors associated with the customer we decide the Credit limit of the customer.

For example : One customer is continuously buying goods from you and making timely payment and having good market position then you can give him Better credit limit.

Credit limit will decide the maximum amount upto which customer can have credit amount. After this The order or delivery can be blocked.

Thanks,

Raja

[Former Member]

Thank You All

[Former Member]

Hi

credit limit in the tab of default data for new customers in define credit control area means what ever the limit you are maintained there it would applicable to customer those are creating newly and it would be shown in FD32 credit master data.

The Financial dept will decide later whether want to change the limit or not in fd32 for the customer.

Edited by: venkat s on Jul 23, 2009 11:46 AM

[Former Member]

hi

If you maintain any of the fields there then these values will be automatically defaulted to the newly created customers.

o risk category

o credit representative group

o credit limit

is maintained for the corresponding control area.

In this way you ensure that a credit restriction will be effective for

new customers, too, as soon as the customer has been created.

If no credit master record has been maintained, there is no credit

limit.

regards

[Former Member]

Hii,

Credit limit is basically crdit worthiness of the customer. Decided by Finance people as to how much credit should be extended to the customer.

Regards,

Pankaj