Credit Limit by Product (Sales Area)

[Former Member]

Dear Experts,

I have to maintain credit limit by Product. Thatu2019s why am maintaining credit controls for sales areas. Because every Product has different individual sales area. Please see below detail explanation.

Our credit control area for customer: 1000 (This credit control to maintain credit limit for customer)

We have 3 sales areas i.e:

1200 AB A1 u2013 (for this sales area product is Chemical)

1200 AB A2 - (for this sales area product is Petrol)

1200 AB A3 - (for this sales area product is Diesel)

So like above products client want to maintain credit limit by Product.

Business scenario is customer 90000123 has credit limit 100 MIL USD

This customer has sales with above 3 products. So we want to maintain (divide) 100 Mil USD credit limit by product that is for Chemical credit limit 30 Mil USD and Petrol credit limit 40 Mil USD and Diesel credit limit 30 Mil USD.

So, I want to maintain credit controls by Product so I created credit controls for 3 products i.e

1001 u2013 Cr.contro alre for 1200 AB A1 Sales area

1002 - Cr.contro alre for 1200 AB A2 Sales area

1003 - Cr.contro alre for 1200 AB A3 Sales area

I have assigned above credit control areas to the particular sales area and maintained credit limit for every credit control area as per above with same customer.

Like 1000 u2013CCA for customer 90000123 (Maintained 100 mil USD)

1001 u2013 CCA for 1200 AB A1 Sales area (Maintained 30 Mil USD with above customer)

1002 u2013 CCA for 1200 AB A2 Sales area (Maintained 40 Mil USD with above customer)

1003 - CCA for 1200 AB A2 Sales area (Maintained 40 Mil USD with above customer)

Whenever I create sales order with the above customer for 1200 AB A1 Sales area (Chemical Product) with 5 Mil USD after that the customer credit limit should be 95 Mil USD here the CCA is 1000 and 1001 Credit control area cr. Limit supposed to 25 mil USD) But I couldnu2019t get like this. I am suspecting this scenario is correct or not. If this scenario is correct. Pls suggest me where I did mistake what I have to do. If this scenario is wrong pls suggest me how to maintain credit limit by sales area.

Thanks & Regards,

Vasu

[former_member184555 · Accepted solution]

Hi

Maintaining different credit limits for different products is a genuine requirement. Because, if the company has different products out of which few products are in high demand and the company may not even supply the material to meet the demand. For such products company may not be interested to extend credit to its customers.

At the same time the company also sells products which are not in much demand(reason could be low demand, more alternatives in the market, outdated products, new products etc.,) and the company wishes to extend more credit to promote the sales of those products.

But, unfortunately we donot have the facility to maintain different credit limits for different products or for group of products. I heard that this facility is available in CRM. Please post this thread in CRM forum also.

Thanks,

Ravi

[Former Member]

Hi Guys,

Credit Control Area is neither determined throug Product or Hierarchy.... It is determined in the following sequence...

1. User Exit

2. Company code

3.Sales Area

4. Customer.

Here you have assigned CCA to Sales area and also to customer.

System first got the CCA from sales area and hence, it will not check at Customer level.

That is the reason why the value is not reducing in CCA 1000.

Regards,

Vishal

[former_member318371]

Dear Vasu,

I have the requirement of division wise credit limit within one company code.

Did you find some solution for it?

Rgds,

Abhilash

[Former Member]

Dear Abhilash Nandeshwar,

I think the question is exactly about Division wise Credit control since he is saying he wants different credit limits for different sales areas, where the basic difference is the Division, like A1, A2, A3.

If you have that, kindly provide the solution other than what is already given above.

Thanks and regards.

Venkat - Hyd

[Former Member]

Hi,

Credit check based on Customers only not product based,u r explained like that This customer has sales with above 3 products. So we want to maintain (divide) 100 Mil USD credit limit by product that is for Chemical credit limit 30 Mil USD and Petrol credit limit 40 Mil USD and Diesel credit limit 30 Mil USD

how to set to under one customer point of,or u r using diffrent credit control areas.

your using diffrent sales areas and diffrent credit control areas,this one not possible,u can remember credit limit based on customers only not product wise.

Thanks and Regards

Rajen.