credit management related query

[Former Member]

Dear Gurus....

i have a query

if we maintain credit contol area with company code then do we need to assign company code with bussiness area????

if yes then why we maintain credit control area in both company code and bussiness area????

regards

debraj

[Former Member · Accepted solution]

Hi,

Credit cotrol area  will be assigned to Comapny code where as Buisness area will be assigned to sales area..If your doubt is not clear..Please elaborate little more

Raneesh

[Former Member · Accepted solution]

thank you 4 responding.

i mean if we maintain credit control area in company code then why should maintain it again with sales area?what is the effect of maintaining credit control area in both the place

regards

debraj

[abhinav_sharma05 · Accepted solution]

When you assign  one company code to a credit control area, you can give the customers

separate credit limits per company code. If you assign more than one company code to a

credit control area, the customer has a single credit limit that applies across all sales in these

company codes.

In this way, you can centralize the credit management in your organization across all the

company codes. In case, if a customer has used up his limit buying from one company

code, he won’t be able to buy from any of the other company codes.

Additionally  by centralizing the credit limit in this way, you don’t have to split up the total

credit risk of the customer across company codes.

There are only three places where a credit check can occur—the sales order, the delivery,

and at goods issue.

Also, lets say your company is having global footprints and its way of doing business in terms of sales is totally different in Asia than America. In this case you might have 2 Sales Areas. And there is a Customer of your company which deals with you in America as well as in Asia through its regional subsidiaries, both of these subsidiaries may have different kind of financial flows as well as credit worthiness and that's why your want to follow a different Credit Policy for American Subsidiary of the customer than Asian subsidiary. By assigning sales areas to credit check you can different the check on the basis of sales areas. 

[Former Member · Accepted solution]

Hi,

Sales order can be created with different sales area.In order to diffrentiate the sale area we need to assign  the credit control area  here,,

Business area detrmination is based on division only.So when sales area changes division also get changed.

Raneesh

[Former Member · Accepted solution]

what if we maintain credit control area only in company code level not in sales area?

[Former Member · Accepted solution]

why we need to maintain credit control area differently with sales area,as if we maintain it at company code level thn credit check will b done in every sales area as per my knowledge..plz rectify me if i m wrong.

regards

debraj

[Former Member · Accepted solution]

another thing suppose i maintain credit control area 1234 with a company code.can i assign another creditcontrol area to  sales area of that company code?

[Former Member · Accepted solution]

Hi ,

I think you are correct..If we wanted to have sales area wise credit then same will be useful in terms of report..All sales transaction will post through sales area.

You can refer bwlo link

http://help.sap.com/saphelp_45b/helpdata/en/4d/0a4aa6b26811d194f400a0c9306794/content.htm

[Former Member · Accepted solution]

hi debraj,

if you assign credit control area to company code by default applies all sales areas that means for all sales organisation what you have defined under that particular company code.

i just clarify with simple example,

you have two sales areas,

one for domestic operations, and another one is for global operations.

for india(domestic) your finacial policies and product rates everything changes with you global operation-USA. based on subsidery every thing changes. so you need to maintain credit control area sales area wise that means credit limit for domestic is diffirent and global is diffirent. like number of requirements comes in to picture.

so, you can assign credit control area sales area wise for maintaining or restricting or reporting etc for various reasons---

warm regards,

jagadeesh.

[jignesh_mehta3 · Accepted solution]

Hello Debraj,

Some companies have Division-wise Credit Control Area. Thus in such cases, Company code is same, but there are multiple Credit Control Areas.

Thuis you need to assign Credit Control Area to Sales Area, so that we can have division specific Credit LImit.

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

it was very good example.i understand it,1 thing i wana ask,,,if we maintain credit control area in sales area thn i dont need to mai tain it in company code level............????

thanx

debraj

[Former Member · Accepted solution]

thank u very much

thn if we maitain credit control area in salea area level thn we dont need to maintain it at company code level?

[Former Member · Accepted solution]

hye deb raj,

let have check on your own, just remove credit control area assignment. and raise sales order, delivery and billing, make a note on previous value credit limit and exposure in fd32 and compare current value after order cycle.????????

then you get back us.

as far as my concern you need not.

warm regards,

jagadeesh.

[Former Member · Accepted solution]

ok im checking....

regards debraj

[Former Member]

Thanks to every one....my doubt is clear now..thank u again very much

regards

debraj

[Former Member]

I also done it myself and just want to confirm with you Mr Debraj Naskar that , there is no need to do assignment of Credit control area to company code if we are maintaining it at Sales area level.

Kindly confirm.