Credit management

[former_member183690]

Dear All, We have a  few requirement from the client current process is we have 3 division A, B C  for each division  we have maintain credit control area. Now requirement is as below 1. If the Credit control area is block as per the division  system should not allow to create the sales order for the  only  for specific material which credit control area is block Example:- CCA is A  and its block  now user is trying to create the  sales order for  Material  A division Material B Division              Material C Division  As per  the  above example CCA is block for A  and system should only stop for  A divison material System should not stop to create the  sales order for B & C division. 2 If the Credit limit is exceeding for the specific credit control area only for those material system should not allow to create the sales order and for rest of division should allow Please advice us how to achieve @ Dear Moderators i have posted the same question in the finance forum one of the finance moderator suggest me to post the question in Sales & distribution so please dont reject as duplicate

[Former Member]

hi hidyath

Requirement is perform credit limit division wise. customer reach credit limit division A then block only division a materials. should not block division B & C materials.

As per my knowledge below configuration we need to done

create each division as one credit control area + one standard dummy credit control area

1. Define credit control area

    Spro - Enterprise structure -- Difination -- Financial accounting -- Define credit control area

                ZZZA -- Division A

                ZZZB -- Division B

                ZZZC -- Division C

                Z000 -- Dummy CCA

2. Assign dummy credit control area to company code

                EX: Company code  ZZZZ --- Z000

3. Assign division specific credit control area to sales area

    Spro -- Enterprise structure -- assignment -- S&D --

              Div A Sales area -- ZZZA

              Div B Sales area -- ZZZB

              Div C Sales area -- ZZZC

4. Assign Division Specific credit control areas (permited ) to Company code

    SPRO -- financial accounting (new) -- Accounts receivable and payable --Credit Management --          Credit control account-- Assign premited credit control areas to company code

5.Define Risk categories for all credit control areas

    Total 9 Risk categories

1-zzzA, 2-zzzA, 3-zzzA

4-zzzB, 5-zzzB, 6-zzzB

7-zzzC, 8-zzzC, 9-zzzC

6. Define automatic credit control areas ( OVA8 ) total 9

Credit control area + Risk category  + credit group

7. Extend the customer for multiple divisions And Billing tab we need to maintain credit control area

8. Maintain credit limit saperatly in FD32

[former_member187236]

Dear Hidyath,

The Sales order will always get block if even one CCA is blocked (reason can be out of credit limit or payment terms exceeds)

Sales Order will not treat it as 3 material from different CCA. If one CCA is block the SO is blocked then adn Release it from VKM3.

I suggest that if you have 3 different division and different customer too, then make different SO for each Div. that is better option.

I do have mapped such scenario where we have 11 CCA , 4 Sales Org, 95 Div and 4 Common Div.

Well the mapping depends on the business requirement and then follow the disciplines of system and design.

Regards

Parag Pandya

[former_member183690]

Hi Pandeya, As CCA is blocked system will not allow to create the Sales order it self

[former_member183690]

Hi Experts, Any advice please any enchantments  please help

[jignesh_mehta3]

Hello Hidyath,

I believe you have three Credit Control Areas, that is one per each division.

Now, You requirement is if a Customer has exceeded his credit limit in Division (Credit Control Area) - A, system should still allow to create order for same Customer in other Divisions (Credit Control Areas).

If my above understanding is correct, my first question would be is it OK to your Finance teams to allow further Credit to a Customer who has already exceeded his Credit Limit in one of the Divisions?

How is the Credit Control Area determined in your company? If you have three Credit Control Areas and each are assigned to unique Divisions (Sales Areas), there should not be a problem because a Customer will have individual Credit Limit in each Credit Control Area.

To determine Sales Area specific Credit control area look at the settings here - IMG - Enterprise Structure - Assignment - Sales and Distribution - Assign sales area to credit control area.

I would also suggest to search the forum with "Division specific Credit Limit" to get further guidance on the topic.

Thanks,

Jignesh Mehta

[former_member183690]

Hi  Jignesh, Thanks for the reply. we have 3 division and 3 CCA  each for each division we have assigned the customer as well. now suppose if the customer is blocked under CCA divison A . when the user is trying to create the sales order for mutli

[former_member183690]

Hi  Jignesh, Thanks for the reply. we have 3 division and 3 CCA  each for each division we have assigned the customer as well. now suppose if the customer is blocked under CCA divison A . when the user is trying to create the sales order for mutliple line item for divison A material Div B material & Divsion C material  system should to create the sales order only for B & C division not for A division . i hope i am clear now please advice Re

[jignesh_mehta3]

Hello Hidyath,

If you have Division-wise Credit Control Area and Division-wise Credit limits for Customers, what is the business logic for entering Sales orders with lines items from multiple divisions?

Thanks,

Jignesh Mehta

[former_member183690]

Hi Jignesh, Business logic is if the customer div A  lets A is for bangalore , if customer is block under A division even CCA is blocked under A division . while creating Sales order system should not take the materials of A division and system should allow to create sales order for rest of division. in the same way if the CCA of A division is exceeds the limit while creating the sales order system should not allow to input material of  A division should allow division of B &C divison.