Credit Management Queries

[deepak_dave2]

Dear All,

1) In credit management you define a credit control area and specify the credit limit . My question is what is the relevance considering we enter the credit limit for client in master data via FD32.

2) FD32 is entered both in SD area and also can be entered in FA any specific reason to do so.

Thanks

Deepak

[jignesh_mehta3 · Accepted solution]

Hello Deepak,

1. When you create a new Customer code, there is not default Credit LImit assigned to this new Customer. Now as this is a new Customer, you still don't know his Credit worthiness & would like to be cautious before selling goods to him on Credit. So for all the new Customers, you would like to have a default Credit LImit, say Rs. 5,00,000.

In this situation, you can mention default Credit LImit in Credit Control Area (T-Code: OB45). Thus this Amount would be set a default Credit LImit for all the new Customer & subsequently you can increase / decrease the Credit Limit for specific Customer in FD32.

2. FD32 from SD / FI side depends on your Company Organization. In some companies Credit LImit are Controlled by Sales Dept while in some Company it is controlled by Finance dept. But in most companies Credit Management is a joint effort by Sale & Finance departments. Thus you have FD32 in both SD & Fi areas.

Hope this clarifies your doubt.

Thanks,

Jignesh Mehta

[Former Member]

Dear Dave

The amount entered in the credit control area creation, is for 'NEW Customers".

The amount entered in FD31 is for a particular customer's credit master.

Rgds

Sumanth.Gururaj

Consultant/Systems Analyst - SAP SD/MM