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What is use of Permitted Credit Control in Credit management.

Hello Experts,

After reading so many discussion on SCN forum related to Permitted Credit Control I am still not able to conclude why we use Permitted Credit Control in credit management.

I have below queries over that.

1. Every SO created with one sales area and the sales org (of this sales area) uniquely assigned to company code further company uniquely assigned to CCArea. Whenever any sale order created system check the credit limit of the customer who has been extended to FD32 of this CCArea. I could not see any scope of Permitted Credit Control in SO.

2. I believe while SO processing every time system check the CCArea with respect to company code which belong to SO. where other CCArea used?

3. We decide the credit limit of the customer with respect to CCArea and when ever we create the SO system pick the CCArea from OB38.

Could any one explain me What is use of Permitted Credit Control in Credit management with real time example.

It would be very helpful for me.

Thanks,

Prashant Sharma

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