Credit management-centralised

[Former Member]

Hello,

If we are  having a centralised credit management. Then if the credit limit for a customer is 1000 dollars. Does this 1000 USD  is applicable for all the company codes under the credit control area.

So if there are two company codes 2000 and 3000, then for any one company code, the credit limit available is 1000 USD.

and suppose if credit  exposure for company code is 400 USD. Then the available credit limit for either 2000 or 3000 or both= 600 USD (1000-400)

is the above correct ?

regards

Pamela

[srinu_s1]

If we are  having a centralised credit management. Then if the credit limit for a customer is 1000 dollars. Does this 1000 USD  is applicable for all the company codes under the credit control area.

Yes.

So if there are two company codes 2000 and 3000, then for any one company code, the credit limit available is 1000 USD.

No, both the company code customer payer can use the 1000USD.

and suppose if credit  exposure for company code is 400 USD. Then the available credit limit for either 2000 or 3000 or both= 600 USD (1000-400)

Yes .

I assume you know the difference between centralized and Decentralized credit management concept in Credit management.

In Decentralized credit management then the above points varies based on total credit limit and largest individual limits assigned to customer payer in FD32

thanks,

Srinu.

[Former Member]

Hello Srinu,

I could not understand the meaning of  your below statement. A customer can exist in more than one company code.  but what the below statement means ?

" In Decentralized credit management then the above points varies based on total credit limit and largest individual limits assigned to customer payer in FD32 "

Also while creating customer credit limit, we use only credit control area and not company code !

regards

Pamela