Hey Dilip,
As we all know that in standard procedure we have a well defined relation between company code and credit control area.
According to which we can have a relation between Company Code and Credit Control area as ‘many to one’. However when we are talking about standard relationship be sure that we are talking about default credit control area (it will be clear just go on).
So simply we usually use a relation of one to many between company code and credit control area. However in SAP we have a concept of permitted credit control areas. Where, we can assign more than one credit control area to single company code. And ultimately this relationship becomes as ‘many to many’.
In addition to this default credit control area or standard relations, you can assign further permitted credit control areas for each company code. Path is IMG>>> Financial Accounting>>> Account Receivable and Account payable>>> credit management>>> Credit control account>>> Assign permitted credit control areas to company code.
This means that the control area can be used flexibly as an in-house control tool even in the line item or they could be determined in the order from the order data, customer data, or a user exit., and data that needs to be posted in the same company code for accounting reasons need no longer be managed in the same control area.
The credit control area additionally allocated to the company code is mostly used, for example, for crediting commitments for those incoming payments to the customer that cannot be allocated. Otherwise, the credit amount is deducted in the control area in which it was also added.
I think it would be helpful little bit as mostly we don’t know much about the availability of such facility in SAP.
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