Credit control area determination

[Former Member]

Dear Friends,

Please explain the process as to credit control area determination in transactions.

Since customer credit limit depends on Invoice,Collection & Credit or debit notes.The determination logic should be applied in all such areas.

I know the determination in case of Sales process but not clear for payment collection,Credit note & debit note(through FI via tcode FB70).

Hope an early answers

Regards

Sanjay

[Former Member]

Hi

remove the assignement of company code and credit control area and reassign CCA to Sales area.

U can assign CCA to sales area wise.;

regards

kedasu.a

[Former Member]

Hi Yadav,

Could you help me; what should I do for that ? in my system that is not happened.

Thanks.

[Former Member]

Hi,

Credit control area is automatically determined with

CREDIT CONTROL AREA

RISK CATEGORY

CREDIT GROUP.

Credit limit check will be done at Sales ordr level and Deliverylevel.

There are two types of Credit checks

1. Simple credit check

2. Automatic credit check

Simple credit check will be done by assigning the CREDIT CATEGORY at the sales document level such as

Run credit check with warning message,

Run credit check with Error message

Run credit check with the Credit block .

Automatic credit check will be done by check the

Credit control area+ credit group+ risk category

In SAP, the credit check is carried at 3 levels,

Sales order level

Delivery level

PGI level

Please revert if you need further details

regards,

santosh

[Former Member]

Dear Santosh,

Thanks for yr prompt reply.

My only question is how control area would be determined in transactions not executed via SD mode if you have different control area basis your sales areas. (At company code level you can assign only one)

Being saingle company code the system will default one control area in all FI transactions which affetcs customer ledgers but this obvioulsy is not correct if credit limits are set per division.

Hope I am able to make clear my requirement.

Regards

Sanjay

[Former Member]

Hi Sanjay

First thing please be clear that Credit control area is assigned to company code level only, not at division level.

Second thing while posting through FB70, system is asking for company code first. So based on this company code system will fetch credit control area.

hope this clarifies your doubt

[aramsum]

Hi Sanjay,

Its not true that you have to have only one credit control area to a company code. You can have additional control areas in a company code. There is a provision for that in SAP. Path for this is "SPRO-IMG-FINANCIAL ACCOUTING- AR/AP-CREDIT MANAGEMENT-CREDIT ACCOUNT- MAINTAIN PERMITTED CREDIT CONTROL AREAS FOR A COMPANY CODE. Normanny we maintain only one credit control area for a company code in centralized credit management. Where as in decentralized we can go for as many CC Areas as you can. Kindly please let me know If you want more information on this.

Regards

Ram Pedarla

[Former Member]

Dear Friends,

Yes obviously we can assign multiple control areas against company code.

I want to undersatnd if we have single company code linked with multiple control areas for e.g comany code is 1000 & control areas are 1000,1001 & 1002.

How system will pick up control area at the time of payment receipt (as payments are recived for transactions in different control areas) as well as at the time of passing credit note in FB70 to customer ?

Regards

Sanjay

[Former Member]

Hi Sanjay

comany code is 1000 & control areas are 1000,1001 & 1002.

This is not possible. Single Control area can be assigned to many CC, but to single CC you can't assign multiple control area.

[aramsum]

Hi Sanjay,

Thats why we maintain the Credit Master record in FD32 AND IN CONTROL TAB we have Individual limit (In particular CC Area) and total limit(All the CC areas). And for particular customer who belongs to certail credit control area we assign a sales area to it. So If the customer belongs to XXX/10/02 and he has a open order value of 32000 ,System check the limit for the particular CC Area to which this sales area has been assigned. And the payment gets updated to the same to that Credit control area.

Regards

Ram Pedarla

[Former Member]

Dear Sir,

I,m fully agree with u that single control area can be assigned to multiple company codes.

I need solution when a customer has different limits in CCA 1000,1001.Now if we enter a payment from customer then we must give the desired control area so that credit exposure should get reduce obviously the system will default CCA 1000 (as it is mapped against company code in SPRO)

Pls suggest how can i determine control area as there will be three control areas on customer i.e.1000,1001 & 1002 while doing this payment receipt.

Regards

Sanjay

[Former Member]

Hi,

We can assign credit control area directly to the company code.

And we can assign it to the sales area only.

Company level is used when there single credit limit for one customer.

But if you customer has different credit limit area then we can assign to different sales area.

So for different region there will be different credit control area.

Now you have different CCA then you should assign then with different sales area.

Now assign those CCA to customer in FD32.

Regards

Raj.

[Former Member]

Dear Raj,

I m very clear on settings. I understand from discussion on this thread that we are checking only SD part of credit control.

We must check the impact of other entries on credit control apart from invoice.

Pls suggest if any one has clearly understood the requirement.

Regards

Sanjay

[Former Member]

Hi,

My needs is:

One customer belongs to multiple credit control area ; It may happen that a single customer buys from different company codes; we can let same customer who has huge outstanding debit in one company code freely buy from other company code -

In this situation that customer must be blocked for all credit control area.... how can I do that ?

Thanks a lot.

[aramsum]

Hi,

Go to "XD05" and put a posting block in all company codes once he exceeds the credit limit. Or you have to go for centrlized credit limit in which you will have only one credit control area for all the company codes.

Regards

Ram Pedarla

[Former Member]

For example:

customer Y in credit control area CCA has individual credit limit 1000 and total max.credit limit 3500.

customer Y in credit control area CCB has individual credit limit 2500 and total max credit limit 3500.

Customer credit limit Y in control area CCA has been exceeded; now I want that when the user tries to make a sales order for customer Y in control credit area CCB the system should not allow this order to be created.

Customer Y must be blocked for all control credit area (CCA and CCB); is that possible ?

[Former Member]

HI

Yes this is possible but only if Customer Y credit limit in control area CCA has been exceeded (more then 3500).

Else reduce the total amount.

Edited by: Yadav on Oct 20, 2009 11:53 AM

[Former Member]

Hi Sanjay,

Did you get a response for this query?

I am having the same problem, we have one company code with 2 credit control areas.

The credit contol area for SD documents/invoices are correct but when we do direct postings in FI e.g., FB70 the system is always setting the default Credit Control Area for the company regardless of the Credit control area we have setup for the customer via FD32.

Do you know how in FI is the credit control area is determined?

Thanks.

[Former Member]

Hi Sanjay

I am replying to this old thread as it was still unanswered and I thought I can give my opinion:

With in SD parameters,

1. As mentioned by Mr Ram We can assign more than one Credit Control areas but only once for a company code and customer code (so one combination is assigned to only one credit control area)

2. When we are receiving payment from the customer as told earlier it is entered for one company code so automatically to the assigned credit control area thereby reducing the credit limit for the customer in that company code & related Credit Control area.

Thanks

Pawan Sharma

[Former Member]

Hi,

By using OB45 T.Code,we can define new credit control areas.

By using OB38 T.Code,we can assign the company code to the credit control area.

Our customer will be created in one comapny code.The system will check the credit control area assignment for that company code and it will determine that credit control area.

This will be stored in "KNKK" table.

For this customer we have to maintain the credit master by using "FD32" T.Code.

FD33 is for displaying.

Regards,

Krishna.

[aramsum]

Hi,

Credit Control Area determination is done based on the assignment of the Company code and the sales area. In "OB38" YOU ASSIGN CC Area to Company code and in "OVFL" You assign sales area to CC AREA. The Credit Limit is maintained in the record(FD32) and this helps the system to determine the Credit Limit of the customer for that paricular CC Area and overall Credit Limit aswell. Kindly please let me know If you need any more Information on this.

Regards

Ram Pedarla

[Former Member]

Dear Friends,

The required settings as to control area has been done for company code (1000)

We have single company code, obviously the assignement between control area and company code will be one to one.

Now if contral areas are more than one how system will determine control area (basis division) at the time of payment receipts and debit & credit notes which are to be passed via FI tcodes i.e FB70 ?

Regards

Sanjay

[Former Member]

Hi Sanjay

Credit control area is assigned company code in SPRO IMG settings. Also after customer master creation in XD01 we need to create credit master data for customer and credit control area through FD32. Credit control area determination is based on company code. and FD32 settings.