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Credit management for multiple company codes under one Credit control area.

Dear Guru's..

I have a situation here which requires expert guidance.

My client has 4 line of businesses under the same group of companies umberalla.

Example Group Company - COMP.

under this group COMP, there are CMP1, CMP2, CMP3, CMP4 as 4 different company codes as per legal restrictions.

All individual companies have different products to be sold and have their own balance sheet at the end of the year.

So far so good.

But, when it comes to credit management, client is asking for a solution like this:

With 1 Credit Control Area - CCA1 (all 4 company codes assigned to this).

There has to be a total limit on Credit control area - CCA1 - 10000 USD.

But each Company code should have sub limits like CMP1 - 1000, CMP2 - 3000, CMP3 - 2000, CMP4 - 4000.

As there are customers buying from all 4 company codes .. So, each customer should have one global limit called 10000 and that should be split into individual limits as per company code.

If the credit limit is exceeded in one company code, system should give relevant message.

Having a global limit is good enough, but how is it we could check for the cub levels?

Kinldy advice..

Pl let me know if u need any additional details..

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4 Answers

  • Best Answer
    avatar image
    Former Member
    Jan 20, 2010 at 07:00 AM

    Hi

    First of all crdit is maintained on the basis of CREDIT CONTROLL AREA not on basis of company code.

    How ever for your scenario there is rounding the way solution.

    go to IMG >>> Defination >>> Financial accounting >>> define credit controll area >>> Select & go in Details, TICK Mark to ALL COMPANY CODE.

    Now go to FD32 - Central data

    Maintain Here total amount (in your case Global limit 100000 USD)

    Maintain Indivisual limit (1000 USD)

    Hope this will solve u r requirement

    Kapil

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    • Former Member Harsha Chaithanya Kethepalle

      Hi,

      Create four controlling area for 4 company code & assign

      You are maintaining limit in one credit controll area atemately for company code.

      Kapil

  • Jan 20, 2010 at 07:04 AM

    Your requirement can achive,if you have Credit control area wrt:each comp code. & you can restrict the Customer with one Global limit as per your req.

    Eg:

    COMP - Group Comp

    CMP1- CCA1

    CMP2-CCA2

    CMP3-CCA3

    CMP4-CCA4

    While creating Customer Credit Master - FD32

    Maximum permitted Credit limit - $ 10,000

    Individual permitted Credit limit - * here you can maintain per credit control area, how max you can maintain eg:Credit control area should not exceed $ 5000.

    now, create FD32 for each credit control area-

    eg: CCA1 - $1000 / CCA2- $3000 etc..,

    it can be done, only if you have multiple credit control areas per comp code.

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    • Reazuddin. MD Harsha Chaithanya Kethepalle

      Else you can either make use of USEREXITs in Credit Management,

      User Exits For Credit Checks And Risk Management

      Credit Check

      If you want to carry out your own individual credit checks, that differ from those in the standard system, you must define them in the following user exits:

      LVKMPTZZ

      LVKMPFZ1: USER_CREDIT_CHECK1

      LVKMPFZ2: USER_CREDIT_CHECK2

      LVKMPFZ3: USER_CREDIT_CHECK3

  • avatar image
    Former Member
    Jan 20, 2010 at 07:24 AM

    Dear Harsha,

    We have same kind of scenario,

    It requires lot more configuration part.

    We maintain 1000 in Central Data.

    As per division wise we have configured and we set credit limit division wise.

    We have division 10,20,30,40 which is nothing but credit control area.

    We maintain credit limit 10 - 100, 20 - 400, 30-300,40 - 200 in credit control area in FD32.

    Its a big scenario cant explain you in details.

    thanks

    Shri...

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  • Jan 20, 2010 at 06:33 AM

    Dear Moderators..

    I tried posting it only once, but could see that there are 2 threads created.. Kindly delete one of the 2 threads.

    thanks.

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