Maximum permitted credit limits in FD32

[Former Member]

Hi Guru's,

What is the use of Total Amount field in Maximum permitted credit limits tab in FD32.

I have searched in SDN as everybody is telling the same thing..

Total Amount: 10,000 INR (Overall Credit Limit in all credit control areas)

Individual Limit: 4,000 INR

All credit control area means ??

Pls guide me with good example..

Thanks

Azeez.Mohd

[Former Member · Accepted solution]

Hi

One customer may exists in many credit control area. Say my customer is in 3 CCA, 1000, 2000 and 3000.

In FD32 for each CCA i have define Individual Limit: 4,000 INR , 4000 INR and 2000 INR respectively. And Total Amount: 10,000 INR (Overall Credit Limit in all credit control areas, sum of all CCAs).

Hope this clarify.

[Former Member · Accepted solution]

Hi Yadav,

Thanks for the reply..

So in Fd32,

If am creating credit imit to the customer in CCA 1000, i have to give 10,000 INR in Total Amount Field.

If am creating credit imit to the customer in CCA 2000, i have to give 10,000 INR in Total Amount Field.

If am creating credit imit to the customer in CCA 3000, i have to give 10,000 INR in Total Amount Field.

Correct if i am wrong..

Thanks

Azeez.Mohd

[Former Member · Accepted solution]

Corrected as you are wrong:

If am creating credit imit to the customer in CCA 1000, i have to give 10,000 INR in Total Amount Field. individual limit.

If am creating credit imit to the customer in CCA 2000, i have to give 10,000 INR in Total Amount Field. individual limit.

If am creating credit imit to the customer in CCA 3000, i have to give 10,000 INR in Total Amount Field. individual limit.

and you can give 30,000 INR in Total Amount field

[Former Member · Accepted solution]

Hi Yadav,

and you can give 30,000 INR in Total Amount field.

For which credit control area i have to give this 30,000 INR in Total Amount Field.

Thanks

Azeez.Mohd

[Former Member · Accepted solution]

Give for any CCA, it will reflect in all CCA.

[Former Member · Accepted solution]

Hi Yadav,

I have given credit imit to the customer XYZ in CCA 1000, i have given 10,000 INR in individual limit.

I have given credit imit to the customer XYZ in CCA 2000, i have given 10,000 INR in individual limit.

I have given credit imit to the customer XYZ in CCA 3000, i have given 10,000 INR in individual limit.

and I have given 30,000 INR in Total Amount field.

I have done automatic credit limit check settings.

Now if i create a sales order with Customer XYZ w.r.t 1000 CCA value 12,000 it will block the order(as per the customization).. which i know very well.

For example it is blocked..

Now the same customer XYZ is ordering w.r.t 2000 CCA..does it block the sales order as it is exceeded w.r.t 1000 ?????

Thanks

Azeez.Mohd

[Former Member · Accepted solution]

Hi Azeez

"Now the same customer XYZ is ordering w.r.t 2000 CCA..does it block the sales order as it is exceeded w.r.t 1000 ?????"

It will not block the XYZ customer for 2000 CCA until over all credit value exceeds 30,000INR or individual credit limit of 2000 CCA exceeds 10,000INR.

Please don't get confuse, system will block order if individual limit of individual CCA exceeds OR sum of all CCA credit exceeds Total amount.

[Former Member · Accepted solution]

Hi Yadav,

Thanks for the reply..

One last question..

If the customer XYZ is in same company with different CCA's and if the customer is in different company codes..with differnet CCA's then how the impact will be..

Thanks

Azeez.Mohd

[Former Member · Accepted solution]

Hi Azeez

If the customer XYZ is in same company with different CCA's and if the customer is in different company codes..with differnet CCA's then how the impact will be..

First thing, credit data which we maintain for customer is based on CCA not Company code. We are assigning different CCA to company codes.

Credit data is the centrelized one and will behave as explained in above posts.

hope this would clarify your doubts.

[Former Member · Accepted solution]

Hi Yadav,

Thanks for the reply..

Closing the thread.Points given

Thanks

Azeez.Mohd

[Former Member]

Hi,

credit control area....

An organizational unit that represents an area responsible for granting and monitoring credit.

This organizational unit is either a single company code or, if credit control is performed across several company codes, multiple company codes. Credit information can be made available per customer within a credit control area.

All credit control area means suppose example you take TATA has got some may company like TELCO TISCO , TATA TEA ,

if one custome is ther he may be customer to all comany codes like TELCO ,TISCO .... if he has got the credit limit in telco that is called individual credit limit for all credit control ares he has got the credit limit that is called total credit limit or All credit control area credit

I hope u understand the example .............

Regards,

venkataswamy

[jignesh_mehta3]

Dear Azeez,

You use each Customer Code in particular Sales Area & Company Code.

Now as these two are independent Organizational Elements the credit limits are controlled by Credit Control Area.

Thus each Company Code is assigned to Credit Control Area & also each Sales Area is assigned to Credit Control Areas.

Now it may happen that a single Customer buys from different Company Codes or different Sales Areas. Thus according to accounting principles we cannot let same Customer who has huge outsanding debit in one Company code or Sales area, freely buy from other Company code or Sales Area.

Thus it may happen that one Customer belongs to multiple Credit Control Areas. so you have the option in FD32 tio set Credit Limitt for single Credit Control Area & multiple Credit Control Areas.

E.g. Customer Code 1005 (who belongs to 3 CCA) has total Credit Limit of Rs. 1,00,000 but maximum Rs. 35000 in each CCA. Thus if this Customer hits an outstanding of Rs. 35000 in any CCA his Credit A/c would be blocked for all CCA...

Hope this is clear...

Thanks,

Jignesh Mehta

[Former Member]

Hi Jignesh,

Can u pls guide me how to maintain this.. in FD32 for 3 CCA's 1000,2000,3000.

E.g. Customer Code 1005 (who belongs to 3 CCA) has total Credit Limit of Rs. 1,00,000 but maximum Rs. 35000 in each CCA. Thus if this Customer hits an outstanding of Rs. 35000 in any CCA his Credit A/c would be blocked for all CCA...

Thanks

Azeez.Mohd

[Former Member]

Hi

The field individual limit is the customer who can receives teh maximum amount with in credit credit control area.

and the field total amount means the customer who can receives in all credit control areas.

Suppose if you have maintained 1000 as individual limit , he can receives 1000 is the maximum amount with in credit control area.

And if you have maintained 5000 as total credit limit , he can receives the 5000 amount with adding of all credit control areas.

I hope you understand above examples.

Regards