Using Multiple Credit Control Area in Single Company code

[former_member188789]

Hi,

Please advice

Our client requires an additional credit control area permitted to the company code for all combinations of sales area/ distribution/division, but in OVFL , there can only be single credit control area maintained..

After having assigned the additional credit control area to the same company in obzk (permitted Company codes) and making necessary assignments in OVA8. the dynamic credit check is functioning when the new credit credit control area is maintained in the billing tab of customer data.

I Would like to know if there is any adverse impact of having two credit control areas for a single company company code.

Or any other impact when there is no assignment for a credit control area under  OVFL.

Regards,

Charmaine

[former_member184065 · Accepted solution]

Dear,

I Would like to know if there is any adverse impact of having two credit control areas for a single company company code.

http://scn.sap.com/thread/1951324

http://scn.sap.com/thread/1584441

Please have a look into above threads .they have explained very well about this .

Thanks,

Naren

[former_member182378]

Charmaine,

Before going in to the details of the business scenario, learning that your company would like to have two credit control areas assigned to a single company code, I have three comments -

1. Be very careful (w.r.t. setting up of Credit management)

2. Understand clearly the business need

3. Understand how SAP system works w.r.t. Credit management

Even if to the sales area or customer or in userexit, the credit control area is assigned.

STILL the company code has to be assigned to the credit control area

Therefore the sales area (having the sales organization) should be assigned to the same CCA, which is assigned to the company code (where sales org is assigned to the company code).

Please give more details about the business need / requirement.

Before you take the configuration changes to PRD system, do extensive testing.

Importantly - Keep it simple!

[former_member184080]

Hi Charmaine,

Jignesh has covered almost all the points.

One more point: Client will have difficulty to maintain the individual credit limits. In otherway, it’s a time consuming activity to maintain many FD32 records.

Also, tracking of all these records would be a cumbersome exercise, for this you can suggest your client to run a T.code or you can schedule a job to get the early warning information. SAP report RFDKLI42/ transaction code S_ALR_87012219

Regards, Sai Krishna.

[rahul_vishwakarma2]

Hi Friend,

  Follow this link : http://scn.sap.com/thread/1951324

Hope this will solve your issue.

Regards,

Kundan

[jignesh_mehta3]

Hello,

Hope you know that Credit Control Area is determined in Sales order in following manner:

User exit

Sales Area 

Customer master Record

Company code assigned to Sales organization.

Now, in your case since you have maintained Credit Control area for each Sales Area (OVFL) system will determine Credit Control Area accordingly.

Coming to your question on impact of multiple Credit Control area in one conpany code:

1. Ideally there should be one Credit Control Area for a company or group of companies. This ensures that one Customer has single credit limit in entire company.

2. But sometimes a Company has very separate business & each business wants to give it's own Credit limit to a same Customer. In such cases we need to create multiple Credit Control Area.

3. The only drawback of multiple Credit Control Area I can see is tracking & monitoring Customer Credit Limits. E.G. A Customer A00001 has huge debit balance in one Credit Control Area & still he can purchase good on credit from other Credit Control area, as Credit limit is checked based on Credit Control Area. For this purposes you can use Admistrative Data tab in FD32 screen. Here you can define Total Amount under Current Credit LImit assinged & Maximum permitted Credit limits to define the maximum Credit LImit a Customer can receive in all Credit Control Areas combined.

Thanks,

Jignesh Mehta

[former_member188789]

Hi Jignesh,

As you have specified , that Credit Control Area is determined in Sales order in following manner:

User exit

Sales Area 

Customer master Record

Company code assigned to Sales organization.

is this a ranking hierachy? ,

And the case i'm having is that for each sales area/ dist. channel/ division there is a credit control A and in customer master data we are maintaining B.

Regards,

Charmaine.

[former_member184065]

Dear,

Yes,the above way system is looking for Credit Control Area .Please go to XD02 and see Credit Control Area Field Help in the Billing Document Tab in Sales Area View.

If you have any doubts please let me know .

Thanks,

Naren

[former_member182378]

Jignesh,

2. But sometimes a Company has very separate business & each business wants to give it's own Credit limit to a same Customer. In such cases we need to create multiple Credit Control Area.
3. The only drawback of multiple Credit Control Area I can see is tracking & monitoring Customer Credit Limits. E.G. A Customer A00001 has huge debit balance in one Credit Control Area & still he can purchase good on credit from other Credit Control area, as Credit limit is checked based on Credit Control Area. 

From reading both your above points, it looks like in these, there are multiple company codes and multiple CCAs. (with One company code assigned to One CCA)

I don't think these examples related to One company code assigned multiple CCAs.

The OP is discussing about One company code assigned to multiple CCAs