credit manage ment

[Former Member]

what is dif between centralized credit,and decentraliged credit check

[Former Member]

hi,

if your credit management is centralized, you can define one credit control area for all of your company codes.

If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes

Pl reward if it helps.

Thanks & Regards

Sadhu Kishore

[Former Member]

centralized credit check means If a customer exists in different SBUs( business units with company codes) but under one credit control area then credit limit will be allocated centralised and that amount is bifurgated into different company codes

Decentralised credit control means

a customer is rgistred with different company codes and those companies are not integrated a separate credit limit will be allocated seperately and a partnerfunction should be created CM-Credit manager

with this when ever you create an order or billing a mail goes to central finance where they will combine those bills.

[Former Member]

Hi,

if u r having one credit control area for all the company code then it is centralised check,otherwise more than one credit control area then it is decentralised check.

for ex

credit limit is Rs10000 for a customer

centralised check for all the company codes this is the limit

De-centralised check for the particular company code only.

[Former Member]

Hi,

centralised credit check means if a customer exists more than two credit control areas the system checks credit limit of that customer cummulation both the outstanding values in both credit control areas during credit check. Decentralised credit check means during credit check the system checks outstanding value of a customer individually for each credit control areas.

with regards,

VK