Use of customer hirearchy in credit control

[Former Member]

Dear Friends,

Good evening.

I would like to know whether we can use customer hirearchy for credit control purpose.

If answer is yes how it can be done ?

Scenrio:

One company code,4 sales areas.

The objective is define seperate credit limit and risk profile for each sales area in which customer is extended.

May Kindly suggest solution keeping in view following entries hiting customer account:

1.Invoices

2.Payments (specialy advance payments)

3.Credit & debit note passed through FI (tcode FB70)

4.Validation to ensuer that Invoice/Debit note of one credit control area shall not be knocked off through payment/credit note of different control area.

Regards

Sanjay

[Former Member]

Hello Sanjay

I don't think you would need to use customer hierarchy for this purpose. You can set up 4 credit control areas (CCA) and assign each one of them to the 4 different sales areas. Although I hate to set up multiple CCAs for on comany code, if that is the business need, you got to meet it.

[Former Member]

Hi chandershaker,

Thanks for your suggestions.

I had thinking on same line though have configured system accordingly.

I need an alternate solution to evaluate and expert advice of the forum.

The objective is in one line that we need single customer code with AR & credit control division wise.

May pls advise.

Regards

Sanjay