Credit Controll area

[Former Member]

Dear all,

I am using one credit control area for two company codes.

is it right?

if my customer is belong to both company code, i want to give credit limit different as per cmpany code then is it possible?

if i assign credit limit to customer then is it applicable for both company code & consider as a total credit of both company code.

Also is it consider all the values of order, billing from both company code while consider as credit limit.

Plz send me the details regarding the same.

Thx & Regards,

PM

[Former Member · Accepted solution]

Hello,

There can be one or more company codes under one credit control area, but it is not possible to assign a company code to more than one credit control area.

Within a credit control area, the credit limits must be specified in the same currency.

The credit limits assigned to customers in one company code are limited only to that particular company code.

Normally customers are created independent of the company code i.e. each company code will have their own customer master records.

But if you have the same customer in both company codes...........you can either create a customer master with same customer number with both company codes or with different customer numbers in the customer master record.

If you have the same customer number in both company codes..........then the system will not allow you to have seperate credit limits as the system takes into account the customer number and credit control area while fixing the credit limit (FD31) .

on the other hand if the customer numbers are different, then you have the flexibility to issue different credit limits in different company codes.

so any orders raised in that particular company code will only take the credit limit of the customer from the corresponding company code.

REWARD POINTS IF HELPFUL

Regards

Sai

[Lakshmipathi]

Dear PM

A credit control area is an organizational unit for specifying and controlling customer credit limits. A credit control area can include one or more company codes. It is not possible to divide a company code into several credit control areas.

Customers can be created in different company codes - the credit control area responsible for a given customer depends on which credit control area the company code is assigned. Customers that are created in company codes with a common credit control area are controlled by this one control area for all company codes.

If a customer is created in several company codes that are assigned to different credit control areas, a separate credit limit is managed for the customer in each of the different credit control areas.

thanks

G. Lakshmipathi

[Former Member]

Actually, u r using the centralised credit contol area, because u are maintaining a single credit control area for 2 company codes. yes, it is right. this depends on ur business requirement.

If u want to maintain diff, credit limits for diff, company codes for a single customer, thro centralised credit control, it is not possible.

If u assign a credit limit in a common credit control area, it is applicable to both comp. codes.

Considering order , billing values depends upon what type of credit check u are maintaining in the OVA8 (credit control screen). Yes it will consider from both the comp. codes.

Hope i answers clearly. ur further queries are welcomable

Do reward points if useful....

Regards

Kaleeswaran