Question about Credit Management (FD32)

[Former Member]

When i goto FD32 i don't quite understand the difference between some fields in 2 different tabs. What is the different between total amount and individual limit in maximum permitted credit limits and credit limit in credit limit data. don't quite understand what these 3 fields are and how they're different from one another. could someone please clarify? thank you!

Edited by: astromar79 on Nov 12, 2009 6:57 AM

[jignesh_mehta3 · Accepted solution]

Dear Friend,

Customer Credit LImit is controlled by Credit Control Area assigned to your Company code.

Now the assignment is as such that one Company Code can be controlled by only one Credit Control Area, but one Credit Control Area can control Credit limits of multiple Company Codes.

Thus you may have a scenario where a Customer belongs to multiple Company codes or Multip[le Credit Control Areas.

Here you want to control the Credit limit for a Customer code say "1001" as following:

1. Total Credit Limit $ 10,000

2. Individual Credit LImit - $ 7000

Here this :

1. Total Credit Limit means: overall credit limit the customer may receive in ALL Credit Control Areas.

2. Individual Credit LImit maximum credit limit the customer may receive within ONE Credit Control Area.

Thus in the above example if the Customer's outstanding crosses $ 7000 in any one Credit Control Area his account will be blocked.

Also if his total Outstanding in all Controlling Areas crosses $ 10,000 then his account would be blocked.

This is based on the principal that if a Customer has a huge outstanding in one Company Code (or Credit control area) then he should be allowed to buy material on credit from other Company Codes of the same group which is quite logical.

Also Credit Limit feild means that total (maximum) Outstanding (debit) amount amount allowed for the Customer.

Hope this helps...

Thanks,

Jignesh Mehta

[Former Member]

Hi,

In FD32 You must have entered the customer number and credit control area , the individual limit is for that specific credit control area and the total limit is for the all the credit control areas.

The Current credit limit shows the amount we have given credit to this customer. Though we may have restricted 1lac as credit limit in individual limit but sometimes we will relase the credit block if the customer crosses the 1 lac limit by VKM3. so the Current credit limit assigned will shows the overa ll amoutn given as credit to that customer for all credit control area in Total amoutn and for that particular credit control area in Largest indv. limit.

hope this clarifies.

regards,

Ravi.

[Former Member]

Hi,

Total amount field will be used if you are having multiple credit control area's applicable to customer.

This limit controls the total amount taking together all sales area's limit (i.e individual amount field)

Regards

sanjay