credit mgt

[Former Member]

Dear all,

What is the use of assigning credit control area at customer master? Assignment of credit control area to sales area ?

How the above both will influence credit management?

Thanks.

Regards,

Aditya.

[Former Member · Accepted solution]

Hi Adi,

Once the credit control area assign to your sales area then the credit limit of your Credit control area will applicable on all the customers who are creating under your sales area and your customer credit limit exposure will calculate in the credit management as per your credit limit.

Hope it helps,

Regards,

MT

[jignesh_mehta3 · Accepted solution]

There can be some Sales Areas where you don't want Credit Blocks e.g. Institutional sales, Sales to Government, etc... Thus if you dont assign Credit Control Area to these Sales Areas then there would be no credit check.

But in other Sales like Dealer Sales / Retail sales / Direct Sales, you would require strict Credit Managment.

Hope this helps..

Thanks,

Jignesh mehta

[former_member660811]

Hi,

The credit control area is assigned to the customer , so that credit check happens for the customer.

It is done on sales order, delivery and PGI

Credit check can be differentiated based on customer for the same company code through RISK category, which we assign in FD32.

Again it is optional to assign the sales area to credit control area, where the assignement in company code is mandatory.

Hope this answers your question

Rgds

[former_member660811]

Hi,

The credit control area is assigned to the customer , so that credit check happens for the customer.

It is done on sales order, delivery and PGI

Credit check can be differentiated based on customer for the same company code through RISK category, which we assign in FD32.

Again it is optional to assign the sales area to credit control area, where the assignement in company code is mandatory.

Hope this answers your question

Rgds