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Credit control area

Former Member
0 Kudos

Hi,

This is a basic question. but it is kind of causing some confusion.

we define the credit control area in enterprise structure. we then can assign the credit control area to customer master. Ifwe make a sales order for the customer, then the credit control area is detemined from customer master for carrying out automatic credit control.

my question is when we can do the above, what is the need to assign the company code(s) to credit control area

am i missing something ?

regds

Edited by: sapsd73 on Feb 2, 2010 7:45 PM

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi

Why we assign company code to credit control area?

As you know, credit control area is used for controling credits with customers and partners. There are different credit control teams within a client to control the credits and are responsible for credit collection, credit processing, dunning etc.

For example say, we have two CC 1000 and 2000, 1000 is located in India and 2000 in UK. they both assigned to two different CCA 1000 (India) and 2000 (UK), so the two different credit control teams will chase the customers based on CCA.

now as per your query, if I have a customer extended to CC 1000 and 2000 then it also need to extend for CCA 1000 and 2000.

Hence for credit control two different teams will take care of him, based on different rules and regulations of CC 1000 and 2000 countries.

Again, If we have two CC 4000 and 5000, both in India, and both assigned to one CCA 4500, so only one credit control team is enough to handle credit for the customer extended for both CC.

hope this clarifies you doubt.

Former Member
0 Kudos

HI

You need to assign the credit control area to the company code for the below points

1. Assign each of the company codes to a credit control area as you

require.

2.ensure that the appropriate credit limit is specified for the credit

control areas and/or for the individual customers.

3.You determine the credit limits via the Accounts Receivable area menu.

Regards

Damu

cong_yu2
Participant
0 Kudos

Hi,

you are going to assign the credit control area to the sales area. a sales area is only assigned to one company code. so the system will find the company code thru the sales area that is assigned to your credit control area...

Thanks!