Multiple Credit Limits

[Former Member]

Background

I am implementing SAP SD where there are two main separate business in one company. One customer can buy products from both business. Credit limits are defined separate for the same customer as the sales team of both business are different.

Question

a) I am trying to persuade to the client that we should define centralized one credit limit for the common customers who deal with both business. Hence one credit control area will be defined in SAP. Can you please let me know the advantages of single credit limit for one customer?

The only problem business will face is that for example: Customer A was assigned credit limit 1000 Rupees. Business A and Business B gets problem that what % of credit limit they should offer to customer for each business.

b) To fulfil the business requirement of defining separate credit limit for one/common customers for both businesses, i will go for the option of defining separate credit control area and can define separate credit limits. What are the advantages/disadvantages of this option?

c) How to configure multiple credit limits for one customer ?

[reazuddin_md]

As per the your requirement,

Option - B will be most ideal & preferrable solution.

- you can set credit limits based on Business

- Tracking of Credit worthiness wrt: business is crstal clear & very much convincing for customers as well

- with Single Credit control area, you cant differentiate nor track the % assigned / used by the common customer.

- Master data maintainance will get increase ( for each customer you have to maintain multiple records- in FD32)

apart from this, I didnt foresee any major disadvantange by having multiple credit control areas.

[Former Member]

How many company codes you are defining?

You can follow de cenrolized Credit Management.

Please follow the below link, it will explain you the config steps you required.

http://www.sap-img.com/sap-sd/credit-management.htm

Let me know if you have any questions.

Arun

Edited by: Arun Duddilla on Aug 20, 2010 12:55 AM